Looking at a trading table may be a bit intimidating at first look but it is a very useful tool once you understand all the moving parts.

The first and most commonly seen is the candlestick or graph chart showing the current value of the investment. As investors buy into the investment green candlesticks trending up are charted and as investors sell a red candlestick trending down will appear.

Next is the wall. Where the buyers meet sellers. The green being buy orders placed at a given price and the red being sell orders placed at a given price. When the two meet a sale order is completed at the agreed price.

Finally the order table where you can place your buy or sell orders. Market buy or sell is instant at the best current offer. Limit allows traders to buy or sell an investment at a specified price or better.

A Stop-Loss or Stop-Limit unlike a standard Limit Order, which aims to profit from the current trends, a trader will use a stop loss order to limit potential losses to no more than they are willing to allow.

This is not only a step towards maximizing profits, it also expands the trader’s options, by increasing their control of the trade’s risk factor. For Stop-Loss to be used effectively, the trader still needs to predict how the market will behave and setup the Stop-Loss accordingly