So I have been stock trading for a while through IB... their button configurations for day trading have a lot of options and I feel like I'm not doing something right. I have looked around for how to configure these and no matter what I do I always feel like my orders are placed and filled in areas disadvantageous to the trade I want to make. For example, my sell order is as such: Sell Absolute : 300 LMT Price : Bid + .05 (amt) TIF : Default Seems as if I should be using an algorithm instead?
Why would you put sell orders in at bid + .05? Makes zero sense. Put sell orders in at either last traded, or ask, or ask +/- an amount based on the following: 1) the volatility of the stock 2) the volume traded compared with your order 3) how much you want to be filled compared with how much you want to maximise price - these are a tradeoff - can't have both.
Depends on your goal! If you want a quick fill, with a 95% chance of being executed, and want to save half the spread, then yes.