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ProTip: use LIMIT/STOP orders when buying and selling. Sending MARKET orders to Robinhood guarantees you going to get a "worse" price compared to the spot price

ProTip: use LIMIT/STOP orders when buying and selling. Sending MARKET orders to Robinhood guarantees you going to get a "worse" price compared to the spot price.

ZainRiz 8y ago
That advice applies no matter which brokerage you're going to
colinbartlett 8y ago
Does this apply to an ordinary low-level retirement investor like me? If I am buying, let's say $500 a week, in some fund as part of my IRA, what does a LIMIT/STOP order do for me? I'm buying it no matter what, the share price is meaningless to me, I will just get more or less shares.
- nodesocket 8y ago
  > what does a LIMIT/STOP order do for me? For example buying a LIMIT says the highest price I am willing to pay per share is X. So you can be confident you'll get a price at least equal to or below the limit price. > the share price is meaningless to me ??? Confused. Do you like buying high and selling low?
  - physguy1123 8y ago
    The downside of setting a limit order is that you only get executed when the market moves against you, OR just don't get filled. For retail order sizes and holding periods, that's probably fine as long as you place orders close to the current price.
    - cinquemb 8y ago
      There is also the case when no one else wants to sell (buy) and bids (asks) way out number asks (bids), especially on contracts that people are using to cover for their other trades. There's plenty of times where I massaged the price up (or down) to where I wanted it more, and dumped/slurped up contracts (at least confirming by checking the bar once it filled and seeing that the price I got filled at was the highest/lowest price of that bar). Granted, it doesn't happen every time, nor do I count on it.
- kasey_junk 8y ago
  It’s virtually free protection against flash crashes & other market oddities.
- mikestew 8y ago
  I don’t even know that you can put a limit order on mutual fund purchases. My gut tends to doubt it, but I’m too lazy to go try. Regardless, I’ve traded for decades and on high-volume stocks (which are the ones you’re likely to trade), putting limit orders in is a waste of effort. For some folks, it’s important to save a few cents. For you, not so much. Different story on penny stock or < 100K/day in volume, but if you’re buying AAPL just put a market order in.

ProTip: use LIMIT/STOP orders when buying and selling. Sending MARKET orders to Robinhood guarantees you going to get a "worse" price compared to the spot price.

ZainRiz 8y ago

That advice applies no matter which brokerage you're going to

colinbartlett 8y ago

Does this apply to an ordinary low-level retirement investor like me? If I am buying, let's say $500 a week, in some fund as part of my IRA, what does a LIMIT/STOP order do for me? I'm buying it no matter what, the share price is meaningless to me, I will just get more or less shares.

nodesocket 8y ago
> what does a LIMIT/STOP order do for me? For example buying a LIMIT says the highest price I am willing to pay per share is X. So you can be confident you'll get a price at least equal to or below the limit price. > the share price is meaningless to me ??? Confused. Do you like buying high and selling low?
- physguy1123 8y ago
  The downside of setting a limit order is that you only get executed when the market moves against you, OR just don't get filled. For retail order sizes and holding periods, that's probably fine as long as you place orders close to the current price.
  - cinquemb 8y ago
    There is also the case when no one else wants to sell (buy) and bids (asks) way out number asks (bids), especially on contracts that people are using to cover for their other trades. There's plenty of times where I massaged the price up (or down) to where I wanted it more, and dumped/slurped up contracts (at least confirming by checking the bar once it filled and seeing that the price I got filled at was the highest/lowest price of that bar). Granted, it doesn't happen every time, nor do I count on it.
kasey_junk 8y ago
It’s virtually free protection against flash crashes & other market oddities.
mikestew 8y ago
I don’t even know that you can put a limit order on mutual fund purchases. My gut tends to doubt it, but I’m too lazy to go try. Regardless, I’ve traded for decades and on high-volume stocks (which are the ones you’re likely to trade), putting limit orders in is a waste of effort. For some folks, it’s important to save a few cents. For you, not so much. Different story on penny stock or < 100K/day in volume, but if you’re buying AAPL just put a market order in.