"Limit" or "Stop" Buy Order

How to calculate "Limit" Order Price:
Cell "B" is the value of the "Last" price history, see chart.

Multiply Cell "B" Last Price by 1.005 (which is a .5% increase in value).

Limit Price = the most we want to pay for the stock. Usually used when the last and low price trades above the Exp. Moving Average (EMA).
 
Stop Price = the price we want to pay but not less. Usually used when the last price just crossed the Exp. Moving Average (EMA).

NOTE: Buy order table values do not reflect today's closing

Buy "Limit Order" example:


Buy "Stop Order" example:

When is it a good time to buy? Whenever the Parabolic SAR indicator travels below the candlestick - see trading model. Remember to place the order on the day when the market was down - place a stop order for next day's order if you can't buy during the day before the market closes (the stop order will not execute should the market trades lower the next day).

In what increments should I buy a positions? I like to buy equity positions in 2 increments or more, provided each purchase is at least $2,000.  Buy additional positions on a dip after having a profit.

Why should I use a limit orders instead of a market orders? market order are OK when trading when the stock market is open - it's easy to see the current price. But most of us put in orders the night before which should be controlled by limiting the purchase price. Let's say, the market opens really high and then shortly after it drops a few points, you would have set a limit of how much you're planning to pay for the stock.

Why should I use a stop order? when the stock just starts trading above the EMA, we don't know whether the stock will continue to go up or will be go down again the next day.  When it's going down, I don't really want to buy the stock (also one could get the stock at a lower price). I always trade with the trend (uptrend that is). The stop price when triggered changes to a market order.