Should I Use Market Orders?
You can place several different kinds of orders when you purchase stocks. A popular online brokerage firm, Sharebuilder, charges $4 per order if you use their automatic trade which is placed on the 3rd Tuesday of the month. You'll save money on commissions this way, but will you save money or earn as much money overall?
Also with sharebuilder, a market order costs $9.95 per share. It's more expensive, but it's often smarter to use this choice. When you place a market order, it goes through immediately, sometimes within minutes. You don't have to wait up to a month. For instance, if you place a market order for 100 shares of Google, as long as the markets are still open, the order will be filled almost immediately.
The good thing about market orders is that you can buy the stock at the price you want when it's at that price. If you think the price is going to go way up tomorrow, you're going to want to buy it right away.
Automated trading could cause you to lose a lot of money. If you see a stock you want at the beginning of the month, three weeks away from the automated trading date, and you do an automatic trade, you have to wait three weeks and who know how much the price could have gone up by then, You could lose a lot of money in gains.
Do you plan on buying a lot of stock at once and trade actively? If so, you should use market orders. This can save you a lot on losses which means more money in your pocket. Think about what you are buying and be strategic accordingly.
If you aren't a very active trader and you do a buy a hold strategy, you might be better off saving on the automatic trading. You can have it set to automatically buy a certain amount each month and this way you wouldn't even know if you could have made more by buying it a week earlier. - 23204
Also with sharebuilder, a market order costs $9.95 per share. It's more expensive, but it's often smarter to use this choice. When you place a market order, it goes through immediately, sometimes within minutes. You don't have to wait up to a month. For instance, if you place a market order for 100 shares of Google, as long as the markets are still open, the order will be filled almost immediately.
The good thing about market orders is that you can buy the stock at the price you want when it's at that price. If you think the price is going to go way up tomorrow, you're going to want to buy it right away.
Automated trading could cause you to lose a lot of money. If you see a stock you want at the beginning of the month, three weeks away from the automated trading date, and you do an automatic trade, you have to wait three weeks and who know how much the price could have gone up by then, You could lose a lot of money in gains.
Do you plan on buying a lot of stock at once and trade actively? If so, you should use market orders. This can save you a lot on losses which means more money in your pocket. Think about what you are buying and be strategic accordingly.
If you aren't a very active trader and you do a buy a hold strategy, you might be better off saving on the automatic trading. You can have it set to automatically buy a certain amount each month and this way you wouldn't even know if you could have made more by buying it a week earlier. - 23204
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posted by X - Men @ 6:09 AM
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