Should I Place a Market Order?
When you buy stocks, there are several different ways to place an order. If you sign up with Sharebuilder, you will be charged $4 per order if you place an automatic trade that takes place on the third Tuesday of the month. Doing this will save you on commission payments, but will it earn you the most money?
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 benefit to placing market orders versus automatic orders is that you can get the price you want right away. Sometimes you will want to buy a stock right away because you think the value will go up soon.
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.
If you are buying many shares at a time and actively trading, you should place market orders when you feel the right time is. This can save a lot of losses. You have to always be strategic in how you buy and sell stock no matter how active you are.
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. - 23212
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 benefit to placing market orders versus automatic orders is that you can get the price you want right away. Sometimes you will want to buy a stock right away because you think the value will go up soon.
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.
If you are buying many shares at a time and actively trading, you should place market orders when you feel the right time is. This can save a lot of losses. You have to always be strategic in how you buy and sell stock no matter how active you are.
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. - 23212
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Do you know how to buy stocks quickly and easily? Do you want to learn? Begin by studying the stock investing basics and principles, and then get started.
posted by X - Men @ 7:45 PM
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