Why can't I get filled where I need to? It's messing up my profits

[voko119 0]

I have a question about orders. I am going to explain a scenario that keeps happening: Let's say I am watching a stock and want to buy at 15.50 because I think it's a a support and will return to a moving average around 15.65 When the stock hits 15.50 I hit "buy" and end up getting filled at 15.61. The stock taps 15.65 but then goes back down to 15.55 and I sell because I think it's going to sink. In theory, I should have made money as my plan was good, but, I wasn't able to buy and sell at the prices I want. How do most people avoid this issue?

 

Thanks!

 

Voko

[voko119 0]

Also - as soon as I place almost EVERY order, I am immediately am at a negative number - almost EVERYTIME. I must be doing something wrong.

[Abiel 475]

Are you hitting BUY in the BUTTON montage? Do you have Andrew buttons in your montage? (Buy @ Ask + 5 cent, Short @ Bid - 5 cent, etc)?

[Robert H 455]

What is the spread on that particular stock? If the spread is 0.10, you are immediately down 0.10/share no matter what.

[voko119 0]

Abiel, I think I understand your point. Are you saying set up the hot keys and then you will place a market limit order? In other words, I buy at market and no more than 5 cents higher?

[voko119 0]

Robert, I don't know. Do I need to study what level 2 is? I am only 30 days into studying.

[Robert H 455]

The spread is the difference between the top Bid and the Top Ask in the Level 2 Montage. It can fluctuate wildly. On some stocks, the spread is usually no more than a penny or two. On others it can be upwards of $1!

[Abiel 475]

Voko, as Robert mentioned, we need to take the spread into account, always. Because of spread, all our trades start with a loss, so we look for small spreads.

 

Regarding orders, we use Marketable Limit Orders (“Buy me now, but up to this price! Not higher!” “Sell me now, but down to this price! Not lower!”) as Andrew teaches in class 3 and in his book, so you want to setup your hotkeys / hot buttons as Marketable Limit Orders (Buy @ Ask + 5 cent, Short @ Bid – 5 cent, etc.)...

 

Let us know if you need further help...