Market Order

S

SuccessfulTrader

Hi Everyone,

This is my first time here. I hope to learn from from everyone here. About me, I have been trading for almost 2 yrs now but have not been successful yet. I really want to become a very successful Trader, which is my main goal.

My first question is, is it better to use market order on all of my execution? I have use limit order to, but sometimes i don't get all of my shares executed and i get frustrated by that. And when i try market order is fast, i like it. I have heard some horrible story about market order and sometimes i use it I get scare that it might take a lot of my money away when i use market order.

Can somebody help me on this. Is is safe to use market order, I don't mind that I lose a few cents.

And I have read somewhere that it says, never use market order on Amex.

Thank you so much for your help!
 
I don't trade AMEX...

Generally you can use a limit order but add on a few cents / ticks so your bid is above the offer. This way you'll get filled at the offer most of the time but they'll also be some protection against a very bad fill because your "limit" is there.
 
Don't be lazy - use limit orders. Sure market orders are safe for big liquid things like major stocks and ETFs, but for anything less, determine your max price and put that in as your limit. You are very unlikely to be willing to buy those shares at ANY price. I've seen market orders pay 150% of the going price and not get the trade broken, so be careful and hopefully you won't be on the wrong side of a trade like that.
 
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