Monday, May 10, 2010

Trading advice for the day

Use limit orders, not market orders.

If you desire market order behavior, price your order through the bid (on a sell) or offer (on a buy) by a few percentiles.

For example, if you want to sell a stock that is trading $10.00 x $10.01, instead of sending a market order down, send a limit order to sell your shares at $9.80.

Market orders are for suckers.

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