Impatience... how to stop it?

O

ozzie123

Hello,

I have a problem with impatience. When I buy a stock or options contract, I always buy it at the market price.

So when the bid/ask price is (for example) 1.5 and 1.6, I always hit 1.6 and rarely wait in the 1.5 line.

This sometimes cost me dearly (if the spread is bigger).

Not only that, sometimes I got impatience for a stock that doesn't move in several days range (although my timeframe is around a month).

How can I overcome this?
 
Trade a more liquid and volatile market. Get rid of your arbitrary one-month time frame. The bid-ask spread is less "valuable" in a volatile market. Volatile markets will give you the excitement you seem to crave. Liquid markets should have tighter spreads thereby reducing the slippage you're paying out.
 
Try limit orders. at the price you want i.e. if the price is 25.00 the bid is 25.01 and you want to acquire the underlined security for 24.99 just put the limit on it
 
on stocks as of late i always try to buy the bid and sell the ask, especially when there aint no more than a few lots each side: most times i get in problem and now rarely hit or lift market. try it out u'd be surprised how often u get a fill. worth it especially when u want out on stocks that have a large spread and a couple of lots on the ask...place your lmt order at the ask and wait...it will be lifted.
 
Do not use market orders, except in emergencies.

As someone else pointed out, using limit orders you can almost always do better than buying at the ask and selling at the bid. If your broker charges a premium for limit orders, find another broker.
 
Be a tactical technician instead of a reactionary technician. A good hunter sit and wait games; a young hunter running around looking for games.
 
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