Market vs limit

Hello and thanks in advance;

I am not ready for level 2 and I have a quick question. I need to execute trades very early in the morning (as the best time to trade is the 1st hour - we all know that...) I find myself struggling to chase a stock that is moving too fast and me having to go through 3 screens before the order is submitted.

I wonder if market orders (placed before the opening) would give me any advantage.

Alternatively, if the answers is no; then what's the best way to execute a limit order in a timely manner?

Finally, where do you find "reliable" pre-market data? I.e.: I will need to know if a stock will open higher/lower...


Thanks/regards

Market orders only work during trading hours.

IMO no data pre market is reliable but some brokers offer an Indicative Open Price

Thanks!

Is pre-market data offered for free in real time anywhere on the net?

its a case of haveing to make decisions very quick broadband connection is essential
using refresh will update screen constantly so that you can see buy and sell depths changing
its hard to use limit orders before market actually opens if bidding is going to create a gap on opening just look at aed friday action gapped up so then left wondering whether to get in or not
on other hand look at mls on friday plenty of time to get a limit order then sell later in day

leneu said:

I am not ready for level 2 and I have a quick question. I need to execute trades very early in the morning (as the best time to trade is the 1st hour - we all know that...) I find myself struggling to chase a stock that is moving too fast and me having to go through 3 screens before the order is submitted.

Click to expand...

Im not sure I can agree with the 1st hour being the best time to trade.
In fact there are probably people that avoid buying before 10:30 or 11:00.

BUT i can agee with you in that its probably the best time to sell.

As for buying, I prefer to buy at or very near to the close. Firstly its so I can fool myself into thinking that Im a professional LOL haha and secondly, That way I know i can't get stopped out by intraday noise (lunch time lows before an arvo run can be a b!tch).

Only stocks that close well have a chance of having a good run on the next days open IMO.

(I say have a chance because who knows what the yanks will do overnight.)

Now, in terms of trading, because I take a long term approach and trade weekly, i always pay market price. When you hold stocks for several months on average, the spread doesn't matter much.

I agree with Nizar the best time to sell is more often than not in the morning but for buying not always the best time. If a stock opens really high it may settle down after 20-60 minutes unless the rise is due to extraordinary anouncement. If you buy late afternoon after seeing growing support then if it opens higher the next morning you have the opening price gain.

Whether I buy or sell on limit or at market depends on the situation and the speed. I paid market for eg recently with INP as it was off and racing and to place at market would have lost time and money. It started dropping as quick so sold at market also (not much later lol). You need more than one screen open to check if any dramatic changes occur and of course be ready to amend order if necessary.

Another issue is number of shares available and if they match your order. No good putting a large sell order if there is little support as it will just drive the price down away from you. Have to decide to sell at market and take the loss or sell in smaller parcels. Same in reverse sometimes.

So many different situations, depends on the moment.