POLL: Preferred order entry type for very short term traders

Discussion in 'Index Futures' started by Thunderdog, Dec 9, 2008.

I prefer the following entry order type when I get a "signal" to go long:

  1. Market order

    34 vote(s)
    31.8%
  2. Predefined limit order

    32 vote(s)
    29.9%
  3. Stop limit order

    13 vote(s)
    12.1%
  4. Limit buy at the ask

    17 vote(s)
    15.9%
  5. Limit buy at the bid

    11 vote(s)
    10.3%
  1. volente_00

    volente_00



    Sometimes you find yourself in the situation by chance and not choice.
    Do you sit on the sidelines eveyday because the risk of breaking news might move ES quickly ?
     
    #21     Dec 14, 2008
  2. If you actually enter during a fast market, then it is a matter of choice. I choose not to.
    No, I only sit on the sidelines in front of scheduled economic reports. I also sit on the sidelines rather than enter a fast market. I may occasaionally find myself in one, but I never enter during one. But that's just me. Also, I don't trade ES. I prefer NQ.
     
    #22     Dec 14, 2008
  3. Here's the thread of Jack Hershey's latest student.

    He definitely isn't making any money ... LOL.

    P.S. I have no idea what type of orders he ueses ... point-in-fact, I don't believe he even trades.
     
    #23     Dec 14, 2008
  4. LOL I have a hard time believing that guy's for real.
     
    #24     Dec 14, 2008
  5. volente_00

    volente_00

    And in front of unscheduled news is a choice ?

    I take it you have never been in a trade during a unscheduled rate cut ?




    So if you are in a trade and it is quite a bit in the money, you will still flatten out because of a eco number being reported ?
     
    #25     Dec 14, 2008
  6. Cutten

    Cutten

    If you use market buy orders long enough, eventually you will pay a price that is absurdly high (e.g. $100 per share on a $1 stock). You are effectively placing your entire net worth at the risk of exchange bust-out rules and committees of faceless bureaucrats.

    If you use market sell orders long enough, eventually you will sell something for 1 cent. This is a bit less dangerous than buying at a near-infinite price, but still catastrophic.

    The only time to use market orders is when your chance of going bust by not exiting as fast as possible is higher than your chance of going bust by a sufficiently bad fill.

    Genearlly you should use way out-the-money limit orders to exit in a hurry, not market orders.
     
    #26     Dec 15, 2008
  7. Cutten

    Cutten

    You misread his post. At no point did he say he could never be caught in a fast market, in fact he specifically admitted that as a possibility. He simply said he would not *enter* during one.
     
    #27     Dec 15, 2008