POLL: Preferred order entry type for very short term traders

[Thunderdog]

I'm curious to know what type of order very short term traders generally prefer when entering a market. If you trade very short term, then please participate in this poll. Any comments you may have are welcome. Thank you.

P.S. The Stop limit order should obviously read "Predefined stop limit order."

 

[volente_00]

What if it depends on the market condition ?


In a slow market I will use a limit to drill the ask. In a fast moving market and if I am trying to catch the bottom of a panic spike I will drill the ask with a limit place a few ticks higher in order that I get filled and If I am already short the market and want to reverse back to long on a fast moving market I will sometimes hit reverse for a market buy for double the short position. Nevermind just read "prefer". I prefer limit drilling the ask that gets price improvement and actually gets filled on the bid.

 

[operator]

I use a stop market order to get in, not on your list.

 

[Thunderdog]

Quote from volente_00:

...Nevermind just read "prefer". I prefer limit drilling the ask that gets price improvement and actually gets filled on the bid.

I'm not quite sure what that means.

 

[Thunderdog]

Quote from operator:

I use a stop market order to get in, not on your list.

You are correct, and I apologize for the oversight. Since I cannot amend the poll options, I ask that anyone who uses a stop order to please select "market order."

Thank you for bringing this oversight to my attention.

 

[increasenow]

ALWAYS a market order...always...great to see you around again T-Dog!

 

[Thunderdog]

Thanks to everyone who participated in this poll. If you are a very short term trader and have not yet voted, then please do so.

An observation, if I may. Since this poll addresses very short term traders, I made the assumption that protective stops and dollar risk, be they mental or otherwise, would be fairly tight. Therefore, it came as no surprise to me that limit orders have been the most popular selection thus far. However, I am a bit surprised by the apparent popularity of market orders in a very short term trading environment. And I am perhaps most surprised that the limit buy at the bid is the least used order type among respondents once an long entry signal is issued.

Any opinions?

 

[SicilianTM]

Quote from Thunderdog:

And I am perhaps most surprised that the limit buy at the bid is the least used order type among respondents once an long entry signal is issued.

Won't you get filled on every loser but miss some winners this way?

 

[Thunderdog]

Quote from SicilianTM:

Won't you get filled on every loser but miss some winners this way?

No doubt. I don't presently trade that way, favoring limit orders at my predefined price. But if you trade very short term, then you are likely to trade fairly frequently throughout the day. Therefore, I would think that cost containment is paramount because small amounts add up quickly. That's why the use of market orders in such a fast-paced trading environment is also somewhat surprising to me. I would think that if your hand goes in your pocket fairly frequently during trading hours, then you'd better be tight with those nickels, no? I guess I just expected more buying at the bid type of orders than only the 1 out of 39 respondents thus far. (Who is that masked man? )

 

[speculatus]

Marketable limit order is the best approach. You gonna take the offer as if it was the market order, and in worst case you'll be bidding (and the very first in the line), so very likely you'll get your fill anyway.