Hi All, about to make the jump to real trading I have a couple of newbie questions first...
I was planning on doing my research and placing my orders and stop losses nightly. I was poking around on the commsec platform and noticed a few things I am not sure how to deal with:
1. If I place an order the night before I cannot use "At Market" I can only use the "Price Limit ($) option.
How people determining the price limit, assuming if i set the limit higher my order will be filled hopefully at a lower cost than my limit? Do people just tack on say 3-5% to the previous close to hopefully ensure the order is filled?
I also saw this on the Commsec website "Please note that an 'At Limit' order will not be accepted, without any advice to you, if we consider the limit price to be too far away from the prevailing market price of that stock."
Can some explain what it means?
Does this just mean if my Limit is too far from the price action they will ignore it? if so what is too far? 5% ? 50%?
2. Stop Losses/Conditional orders.
If I am trading EOD, It doesn't look I can place a conditional order until I have purchased that stock. That means I will be running without any stops for 24 hours! or am i missing something?
3. If I really try to I can probably login during trading hours 95% of the time, should a really be aiming to do my trading when the market is open? or are the above issues really trivial?
Thanks for putting my mind as ease.