Post #4152 by elann on the Mechanical Investing board

Investment Strategies / Mechanical Investing

Unthreaded | Threaded | Whole Thread (12)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 8

This has occurred to me often; it occurred last week with APP. It occurs for me about once a month when I try to save by using a limit order. APP went from 363 to 380 the next morning so yes it can cost you if you miss a purchase by using a limit order that doesn't execute.

Sometimes the risk is big. I am up 62% in TPR in two months; if I had missed that by using a limit order trying to save 1/2%? You can see the risk.

A limit order is not a catholic wedding. Yes, maybe in 10% of trades the price will move away from you by a few cents. I always check immediately after placing my order, and I adjust the limit to get the execution. I never place an order and wait till the next day to find out that it didn’t execute.

Another 10% of the time you actually get an execution that is a few cents better than your limit.

Elan

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (12)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.