deprez
60 posts
msg #28345
- Ignore deprez |
9/5/2003 3:24:04 PM
I tried to sell PVTL today at $2.10 Limit.
Only a partial sell was triggered and the price fell to $2.03.
Had I sold at market, then I would probably have sold everything around $2.07.
Part of the order is still open.
Should I cancel the partial fill and sell at current?
Or should I stay open ad infinitum until it reaches that point?
If it makes it back to $2.10, then will not the probability that it will increase beyond that increase?
What are the communities' views on when to sell at market vs. limit?
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todddunning
31 posts
msg #28352
- Ignore todddunning |
9/5/2003 6:08:35 PM
That's wild dprez - I had the exact same thing happen buying RCOM today. It dipped through my buy stop and partially filled, then the price shot up, and I didn't know what the hell was gonna happen. Muddy says always use market, and Avery says always use limit. At least I get filled at market on Ameritrade, and bu it's not always as good a price, as you had.
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jthehut
124 posts
msg #28356
- Ignore jthehut |
9/5/2003 6:46:02 PM
Are you guys using 1 minute intraday quotes? That helps me in those situations when there is a sudden dip through the limit, whether to keep the partial shares going for a little while longer.
As Rumpled says, you don't lose by taking a profit...
M aka jabba the hut
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newskate
29 posts
msg #28360
- Ignore newskate |
9/5/2003 9:41:51 PM
Does this happen a lot - not completing orders? Was there something unusual about lot size? Did the limit just hit, or did the price go fast by it?
thanks
Stephen
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deprez
60 posts
msg #28362
- Ignore deprez |
9/6/2003 1:50:27 AM
This is the first time it happened.
Too fast I guess.
And I use 1 minute charts.
I am just looking for a consensus policy.
I have heard that you can get screwed if you go market.
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EWZuber
1,373 posts
msg #28363
- Ignore EWZuber |
9/6/2003 5:03:35 AM
If I need to exit a stock quickly because it is going against my position I will always use a 'market sell'. If I was already holding the stock and saw it approaching stiff resistance and wanted to take advantage of any brief spike up to resistance I would use and post a 'limit sell' and leave it there keeping a market sell loaded up just in case.
Don't like to use market orders when buying. I suspect it is often better to get a partial fill than to end up getting in at a bad price, particularly if the stock ends up going against your position. Everyones situation is a bit different though, data speed, broker, liquidity of the stock all comes into play. For some a market order might work fine.
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marauder
6 posts
msg #28371
- Ignore marauder |
9/6/2003 4:40:43 PM
Stephen, PVTL traded 176,000 shares Friday so it's no wonder why orders weren't filled. Same situation with RCOM. Low volume equals low market interest, meaning no one was there to buy the shares.
You've stated that you will be playing with a respectable amount of money, so it might be in your best interest to trade in higher liquidity.
Do your research to find out what happens when you enter a market vs. limit order, particularly on listed stocks. In some cases it might be cheaper just to send the specialist or market maker a check. You run the risk of experiencing considerable slippage with a market order.
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chessnut1
58 posts
msg #28377
- Ignore chessnut1 |
9/6/2003 8:39:37 PM
What Todd mentioned about RCOM happened to me too, with the same stock on the same day. In fact I think Todd took the shares I wanted. It's his fault I am now holding a bizarre 838 shares of RCOM! The observation about volume I believe is right on. I noticed when watching an open T&S window that trading was thin. I think it was just me and Todd out there that day. :) --BJ
As a sidebar to this thread, on a rapidly falling stock, seems that using market or limit to sell both have their problems. Any guidelines from long-time traders?
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newskate
29 posts
msg #28380
- Ignore newskate |
9/6/2003 9:51:29 PM
All, thanks for the input / comments. Lots to learn here - like just how big is too big? I've been trying to stick with picks that have quite a few for this very reason. Some days however, the lower volume stocks are the few that pop up on my filters. I'll have to put some more checks in my "pre-flight" system!
thanks again,
Stephen
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EWZuber
1,373 posts
msg #28384
- Ignore EWZuber |
9/7/2003 3:39:16 AM
chessnut1
What I've usually observed is, a technical support level is broken on the 5 minute chart. Sometimes they crash quickly just after the break and if 1 or 2% slack is given then things can get out of hand fast so there can be no hesitation. Usually the fast drops do recover some or maybe even all in bullish markets but when it exceeds 1 or 2 % below the violation of support and there is no support for several percent below the broken support, then I bail.
These support and resistance levels are all laid out at the start of each session and trend lines are drawn in as the 5 minute RT chart lays thing out. On occasion if the stock is badly oversold I'll hold longer than usual. The cost of a trade is just too cheap to not use it as insurance, IMO. A market sell order is the only way to get out fast. So far with IB I believe it has always been within about 1 second and prices have been good.
It's also important to be ready to re-enter at next support if it affords an opportunity. If the stock was chosen carefully it should still be a viable trade but no reason to totally commit to that belief until it is proven to be true ( when a technical support area holds ). Sometimes a limit buy order is set just a fraction of a percent or so above support. If it's falling fast it will usually touchdown where it will execute then rise quickly. This is where there needs to be focus. What happens when the price rises to old support and is tested as resistance. This is the deciding factor about holding or closing. If it bounces down then it is confirmed as resistance and I'm out. I like this system for entering but I'm certainly open to suggestions, opinions and trading experiences. It would be interesting to see how others deal with these things.
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