I just had a thought about this.
why people use limit orders and risk the drawdown trading against the current trend istead of letting the price go through and entering the trade upon retracement/reverse by setting the stop orders..
For example
EUR/JPY - set Sell limit 161.00 when the price is 160.00,
how would it be better then let the price go all the way it want to 163.00 then enter short when price come back down.
Which are better to use ?
why people use limit orders and risk the drawdown trading against the current trend istead of letting the price go through and entering the trade upon retracement/reverse by setting the stop orders..
For example
EUR/JPY - set Sell limit 161.00 when the price is 160.00,
how would it be better then let the price go all the way it want to 163.00 then enter short when price come back down.
Which are better to use ?