Using Limit Orders – A Pratical Example Of A Successful Trade
Using limit orders correctly, can give you an advantage over traders that are not patient and make use of only market orders
. In this article I will show you an example of a trade that I had that was only, and only, successful because of the use of limit orders.After doing my night research that day, I found out that there was one particular stock that I was willing to buy it the following day. So, next day the market opens. I have a rule that I will wait at least for one hour after the market has opened to insert my orders. That way you avoid all that volatility that might ruin a winning trade. After the first trading hour, my stock has moved higher and at that price, it was no longer a good buy. So, I decided to place a buy limit order.
By placing a buy limit order, I basically had a setup that was like: ok, I want this stock but not at this price. If it does reach that other price, then I will buy it. And then, forgot about it. I was not filled that day since it continued to make higher highs for the whole day. But in the following day, quite a big surprise happened.
There was some shocking news early in the morning it seems that they are coming more often than not and all stocks opened with a huge gap down. Since I had placed a limit order the previous day, I got filled in the first hours when that gap happened. Later, during the day, those news were proved all wrong and all stocks moved back to where they should be in the first place. That has enabled me to make a quick profit of around 5% in just few hours just because I had the discipline and the patient to not buy the stock until I was satisfied with the price.
Discipline and patient do pay its dividends right?
Using Limit Orders A Pratical Example Of A Successful Trade
By: Fernando Brinkerhoff Disney Themepark Tickets At Lowest Price - Buy Online Online Directories Aid In Free Traffic Generation Online Loans Instant Decision - Helps To Confront A Financial Crisis Top twenty easy ways to make money online Make Money Online By Domain Flipping The 3-Minute Guide For Making Money With Surveys Online Essentials To Play Bingo Online Online Court Reporting Career Preparation Options Top And Best Online Poker Bonus Deals Play Poker Online Could Make You A Billionaire How To Obtain A Fast Payday Loan Online Top ten easy ways to make money online Adsense And The Browser