Advanced Techniques in Day Trading: A Practical Guide to High Probability Day Trading Strategies and Methods

Stop Market

A Stop Market order becomes a market order once the trigger price is hit. In this example, I am long 100 shares of FB with an average cost of $166. I want to exit the position if the price falls $1 below my entry, or to $165. If FB reaches this price, a market sell order will be sent to sell the 100 shares. To enter a Stop Market order:

1. Ensure that the correct number of shares is entered, or press P to automatically populate the field with the current open position of 100 shares
2. Select STOP from the route dropdown
3. Select Market from the Stop Type dropdown
4. Enter 165 in the Trigger Price field
5. Press SELL

See Figure 2.12 below for a screenshot of these steps in the appropriate window in Montage.

Figure 2.12 – Example of how to enter a Stop Market order in Montage.

Confirm that the Stop Market order appears correctly in the Orders window, with Type SM:165, as per the screenshot in Figure 2.13 below:

Figure 2.13 – Screenshot of confirmation of entry of Stop Market order.

Alternatively, you can script a Hotkey to send a Stop Market order. Here is an example for sending a Stop Market order at $1 below average cost:

Share=Pos;ROUTE=STOP;StopType=Market;StopPrice=AvgCost-1;TIF=DAY+;SELL=Send;