Buy limits help you systematically do this without constantly monitoring the charts. Deciding where to put these control orders is a personal decision based on the investor’s risk tolerance. Some investors may decide that they are willing to incur a 30- or 40-pip loss on their position, while other, more risk-averse investors may limit themselves to a 10-pip loss. It is important to note that the price at which the buy limit order is placed should be based on careful analysis and technical indicators. Placing a buy limit order at a random price without any analysis can result in losses. When placing a limit entry order you are looking to buy below the market or sell above the market at a certain price.