A good habit in trading is to let the market come to you instead of chasing the price. One of the best tools for this is the limit order.
Before placing my order, I analyzed the 24-hour price range for PAX Gold (PAXG).
24h High: $5,221
24h Low: $5,128
After reviewing this range, I calculated a possible dip within the market movement and placed a limit buy order at $5,137. The idea was simple: if the price dropped near the lower end of the range, my order would automatically execute.
Later, when the market dipped, the order triggered and I was able to buy PAXG at $5,137, close to the lower part of the 24-hour range.
Now the current market price is around $5,152, which means the position is already above my entry price.
This is a simple example of how limit orders allow you to plan your trade instead of reacting emotionally to the market. By analyzing the price range and placing your order in advance, you can potentially enter at better prices.
Key takeaway:
Always take time to analyze the market first, look at the price range, and place limit orders instead of chasing the market. Patience can often lead to better entries.
This is not financial advice — just an example of a strategy that helped me in this trade.