I have question for stop order and would need someone, an expert, to please check my statement whether I am correct or wrong. I think the statement is correct but just want to double check: Both Stop Order and Stop Limit order (i repeat: stop limit and NOT limit!) can be used only for ENTERING either long or short position. They CANNOT be used for exiting either long or short position. Is this correct? IF NOT correct then I would like to kindly ask you to please keep an eye of this topic because I will show the picture to explain why do I think Stop Order and Stop Limit (not limit but stop limit!) can be used only to enter long/short position but not to exit it. Thank you in advance.
You are incorrect in your thinking.
Stop limit orders and stop market orders can be used to both enter long and short positions and exit long and short positions.
I use them all the time for both my entries and exits out of both long and short positions.
In fact most people use stop orders to limit their losses or protect their profits on their existing open positions