Daytraders: Limit Order Vs. Market Order

It does seem like the peanut galary claims that limit orders are better, however how can you truely believe this when there was no numbers that were put out.

It's like the whole stupid immigration debate. You hear all these ANTI immigration idiots saying "they take welfare money:, "they clog up hospitals and don't pay" "they cause crime" while the PRO immigration people say "It saves tax payers tons of $$$"

And both of these idiot groups will battle this forever when really a calcuation of the following equation is need.

(negative effects of immigration) is greater than or less than (positive effects of immigration)

if you don't have numbers how can you really make an accurate judgement.

So market orders vs limit. There was no data that was presented, only reasons why certain lmiit is better than market and why market is better than limit.

The question is, is it worth it to pay the small tick for every order and lose of on the big catch or vice versa.

Limit: 0 0 0 0 0 0 0 -7 = -7
Mkt: -1 -1 -1 -1 - 1 - 1 -1 -1 = -8

From the following example limit would be better.

 

Not following you here. Like I said, it depends on ones strategy which one is a better choice.

 

my fault. I explained that terribly.

I'm saying that for each of the -1s is the premium that you pay for entering at market. WHen you enter at limit you don't pay the premium.

Then you see a -7 on the limit side, because you didn't get filled, and the price just shot up. While entering at market, you get filled and go along for the ride.

I hope that's clear

 

you are confusing terms
"You hear all these ANTI immigration idiots saying"

very few people who are for enforcing of our immigration laws are "ANTI immigration"

they are anti-ILLEGAL immigration

i am FOR immigration

i am against illegal immigration, and FOR enforcement of our laws AGAINST illegal immigration.

 

I use the daily pivots and limit orders (on YM), essentially to 'buy on a pullback'. For example the market opens above the Central Pivot and drops (depending on a couple of other indicators) I will place a buy limit just above the CP with a stop below R1 (or 10 points - depending on volatility) and let the trade work itself out. Limits can be frustrating when you see a market fly without you but they do improve Risk/Reward and for that reason I continue to use them

 

Sorry - obviously meant a stop just below S1 on R1!

 

I use:

stops for entry
stops for exits when mkt goes against
limits for profit targets

and market orders when I panic to exit a position

works for me!