Computer Trading on ASX.
I have held DOW shares for quite some time now having bought them at below $3. On 10/05/06 they peaked at $9.26 and then slipped along with the rest of the market closing at $7.41 last Monday, 7/08/06. Tuesday they were in a trading halt following an unexpected big downgrade in earnings. Wednesday morning as soon as the Exchange opened I placed my shares for sale at $7.30 but on reviewing this order saw that the price now was $7.28. I quickly scrambled (using etrade) and changed my price to $7.15. On reviewing the order, however, I saw that the price was already $5.65. This took less than a couple of minutes to drop from 7.28 to 5.65 trading many millions of shares.
I was certainly surprised with the speed with which all of these transactions were performed and came to a conclusion that there must have been a lot of computer trading taking place.
Any comments about this and how should one sell/buy shares under similar conditions? I think that maybe by placing orders "at market" instead of "at limit" one might be able to get in a little bit earlier ??