Exact Entries

Discussion in 'Psychology' started by tyler19, Jan 30, 2007.

How do you enter a trade?

  1. Enter At Market

    14 vote(s)
  2. Enter At Exact Price

    10 vote(s)
  1. tyler19


    Is it more common for Traders to place orders at exact price upon entry or market orders when they get there signal.

    I never feel safe when buying at Market.
  2. If you enter with a limit order you're likely to miss the best moves (you know, the ones that take off as soon as you enter), and be left entering only the second rate trades. And you do this to save what? your commission? give me a break.
  3. i think it depends on one's trading style, and the market one trades

    i trade mostly YM and almost all of my entries are limit orders.

    there are a few breakout type setups i use where i will use a buy stop to enter long, or a sell stop to enter short (thus, at market) but 90% of trade entries are limit order

    look at this way

    if you use a market order on both sides, you lose the spread (some people think you pay it twice. that's false. buy the ask, sell the bid = one spread). if you enter with a limit order, and sell with a market order, you do not pay the spread. if you enter limit and exit limit, you make the spread

    in the long run, that makes a difference. again, depends on your style and market

    for a scalper, entering limit makes a BIG difference
  4. tyler19


    I scalp, so that is why I feel the need to enter at an exact price.
  5. tyler19


    You sound like you need a break...

  6. Never use market orders. The specialists always give you the worst possible fill. If a move takes off and you put in a market order, you're more likely to get filled at the top of the move right as it starts to reverse. I've seen market orders 10 cents outside the last print.
  7. tyler19


    I trade ER2
  8. Depends on the market. Sometimes you get killed in slippage with market orders - FX futures - other markets market orders have very little slippage - ES. All IMHO, of course.

    I personally prefer market orders. You miss too many good moves entering on limit orders. Plus, other people can see your orders.
  9. I would love to get in on limit orders but I have missed so many trades trying to save a buck that I gave up on it. I enter mostly on stop orders.
  10. "I personally prefer market orders. You miss too many good moves entering on limit orders. Plus, other people can see your orders."


    you don't

    at least, I don't

    there are many ways to skin the market cap. if you are a "breakout trader" then you need market orders. less than 10% of my trades are breakout variety.

    again, depends on the market and the type of trading

    as for others seeing your orders. this is absurdly irrelevant if you are trading any decently liquid futures contract.

    this is one of the dumbest things i hear traders saying. unless you are trading very large size, it's totally irrelevant. if you have a bid to buy 5 contracts at XXXXX on the dow futures, that is going to have as close to zero effect on the movement of the dow as you could imagine
    #10     Jan 30, 2007