Posted by dbray740 on 14th of Apr 2009 at 11:11 pm
I use mkt orders too, but I only buy/sell at market when it's a
highly liquid stock or ETF. (SRS, SSO, etc are great for this). But
if it's lightly traded, then it's generally best to use a limit
order. I once bought some shares of a lightly traded stock for
about 11 cents, but they filled at around 17 cents. Why? Because
nobody was available to sell to me at 11! A limit order would have
saved me the trouble since it wouldn't have filled that high. But
highly traded stocks and ETFs almost always get filled instantly
for me when I buy/sell at market.
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I use mkt orders too,
EOD
Posted by dbray740 on 14th of Apr 2009 at 11:11 pm
I use mkt orders too, but I only buy/sell at market when it's a highly liquid stock or ETF. (SRS, SSO, etc are great for this). But if it's lightly traded, then it's generally best to use a limit order. I once bought some shares of a lightly traded stock for about 11 cents, but they filled at around 17 cents. Why? Because nobody was available to sell to me at 11! A limit order would have saved me the trouble since it wouldn't have filled that high. But highly traded stocks and ETFs almost always get filled instantly for me when I buy/sell at market.