Several types of orders can be employed when trading the markets.
Each one of them has an objective and a different behavior according to what you specify when you insert them in your home broker (or when you tell your broker to insert them for you).
In this article I will be explaining what "Good Till Canceled" order type is and how to use them.
Good Till Canceled This type of order, as the name suggests, will remain valid in your home broker until you MANUALLY cancel them.
If you do not do that, they will remain active until they are executed.
One good example when to use this type of order is when you want to buy your preferred stock: you have thoroughly analyzed the graphics, read all the fundamental analysis available and decided that the stock at the moment is a bit expensive.
That is when good till canceled order will come in hand.
Let's suppose that you believe that the stock will perform a pullback before making new highs and you want to buy the stock at that particular price no matter when it happen: it can be today, tomorrow, next year, next decade, etc.
So, you enter your "GTC" order and then just wait.
Either your order will be executed someday or you will have to manually cancel that order.
Conclusion "GTC" orders are a powerful type of order that you might be able to earn some good money with it.
Just be aware that since they will not get cancelled unless you manually do it, you should set some kind of remainder somewhere to check that order again.
Imagine if you left that order in your home broker, completely forgot about it and then one day, there is shocking news that the company went bust! You open your home broker only to realize that you bought that the stock only to see it fall? Not good right?