Pros & Cons of Placing a Limit Order in the Stock Market

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Posted at: http://tradersfly.com/2015/10/pros-cons-of-placing-a-limit-order-in-the-stock-market/

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37 COMMENTS

  1. Hi, how can I analyze the volume or liquidity in a certain stock, let's say a small company will have a lot less volume than a huge company, is there a way I can value liquidity depending on the company size?

  2. Thank you for the video! Is a buy stop limit going to prevent a fill because it says you won't pay any other price but that limit? I have seen this in simulation.  I get filled quicker if I just put in a limit buy vs a stop limit buy.  Am I on the right track?

  3. Hi Sasha, Can the Limit Order be used effectively in the following scenario as an Example:
    – Stock is priced 80$ at the moment
    – Previous resistance were at 100$ and you are watching this price as an entrance
    – You have a 9-5 daily job and you don't want to miss the potential spike on the resistance line being broken
    Now if you place a limit order at 100$ (with current price being 80$), would that get filled only when the market riches the price around 100$? Or is there a risk that the order get's filled immediately because someone else want's to sell it more expensive than the market price?
    Thanks for your video 🙂

  4. Hi there, thanks for the video. I wanted to expand on limit orders. Does the limit order always gets filled if the price goes beyond the limit order? So let's say I want to go long at 35$ at market open, stock is trading at 36$, goes down to 34$ and back up to 36$ within the first minute of market open, with the wide bid spread associated with market open and high volatility, will my order get filled at 35$ assuming liquidity is not an issue?

  5. how do you sell your stock on td ameritrade by T-Stop % and $? Let's say a penny stock is .18 cents and when the market open, i know that the price will go up to 20 cents by mid day it will go to 24 cents. So let's say i want to sell my stock by 22 cents, how do you set it with T-Stop $ to sell when the price reaches 22 cents?

  6. With regards to going long, you cannot use a limit order to buy at a price ABOVE the current market price for instance if you're expecting a break to the upside. A LIMIT order will fill at the lowest possible price regardless of the limit order price you specified. So in this case, use a Buy Stop Order to Enter a long position at a price above the current market price. Thanks.

  7. I had a question – so say Amazon went down $1 during market hours and during after market hours it sky rockets down $10. So basically what this means is right when the market opens the next day the stock will go back to the $1 it was down but during the day there's a good chance it will get down to $10 correct? So I should probably sell my shares the morning of, before it starts trending down close to 10$?

  8. Thank you for the videos I will subscribe. What is your opinion on this scenario? Stock ABC Bid price 48.20 Ask price 48.22. If I placed a limit order at 49$ they will fill me at the best available price correct? Around the 48.22 range? I always use limit orders even for something I want instantly. I haven't ever seen a point in using the market order.

  9. what about placing a limit when the market is closed. I placed a limit $ .65 market opened at $.62 but I paid $.64 10000 shares screwed for $200 its bad enough with the high dealing charges but when the steal another $200 it stinks!! These people don't have a lousy name for nothing

  10. Got a question about buy limit order for pre-market. Lets say the stock i want to buy is $5 and i want to buy it but am afraid i will get filled at a high price if i set market order. If i set a buy limit order at exactly $5, will I get filled? Or do I set the buy limit order above or below the current pre-market price?

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