Order Types, Bid/Ask & Why You’re Getting Bad Fills
Most beginners lose money before the trade even starts — not because their idea was bad, but because they don’t understand how orders work.
This lesson is going to save you money immediately.
1️⃣ What Is an Order?
An order is simply how you tell the market what you want to do:
- Buy
- Sell
- Exit
- Protect yourself
But how you send that order matters more than you think.
2️⃣ Market Orders (Fast but Dangerous)
A market order means:
“Get me in RIGHT NOW at whatever price is available.”
Pros
- Instant entry
- Guaranteed fill
Cons
- Slippage
- Terrible during volatility
- You don’t control price
👉 Beginners love market orders
👉 Professionals use them only when speed matters
If you’re using market orders during news or high volatility, you’re basically saying:
“I don’t care how bad the fill is.”
3️⃣ Limit Orders (Controlled & Professional)
A limit order means:
“I will ONLY buy or sell at this exact price or better.”
Pros
- Full price control
- No surprise fills
- Cleaner execution
Cons
- You might not get filled
This is what disciplined traders use most of the time.
4️⃣ Stop Orders (Protection, Not Entry Toys)
A stop order activates only after price hits a level.
Used for:
- Stop losses
- Breakout entries (advanced)
Key rule:
❌ Stops are NOT suggestions
✅ Stops are NON-NEGOTIABLE protection
If you move your stop every time you’re wrong — you’re not trading, you’re hoping.
5️⃣ Bid & Ask (The Hidden Cost Nobody Explains)
Every chart has two prices:
- Bid = what buyers are willing to pay
- Ask = what sellers want
The difference is the spread.
You buy at the ask
You sell at the bid
Wide spread = instant disadvantage
Tight spread = cleaner trading
👉 This is why low-volume stocks destroy beginners.
6️⃣ Why Beginners Get “Robbed” on Fills
Common rookie mistakes:
- Trading illiquid stocks
- Market ordering during volatility
- Ignoring the spread
- Entering emotional instead of planned
The market didn’t scam you.
You just didn’t understand the mechanics.
7️⃣ Pro Rule
Before you click buy or sell, you should already know:
- Exact entry
- Exact stop
- Exact target
- Exact order type
If you’re deciding after you’re in — you’re late.
Final Reality Check
Trading isn’t about predicting.
It’s about execution, discipline, and risk control.
Master orders, and your trading instantly levels up.
Be honest:
Which one do you use most right now?
- Market orders
- Limit orders
- I didn’t even know the difference 😅
Comment below 👇
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Order Types, Bid/Ask & Why You’re Getting Bad Fills
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