Apologies if this has been asked/answered before . . .It is very difficult (but not impossible!) for me to do my rebalacing on Mondays (my rebalance day)after the market has opened, although I believe this is recommended as safer than submitting my buys and sells over the weekend. (All weekdays are well nigh impossible for me to accomplish my trading.) Is there a consensus that placing my buy/sell orders for market opening is a bad idea? I "can" jump through hoops if necessary to accomplish this after market opening, but it definitely takes some doing. It is just much more convenient to do it over the weekend. The reason this matters more than a little to me, is because I have four monthly ports. I have the starts staggered across four weeks (I get fewer duplicate selections that way), so I have one port to rebalance every week.TIA for sharing your wisdom.ScottAKA drbandage
Scott,Many of us have horror stories to tell about the treatment often received at the hands of market makers and ECNs when placing orders over the weekend. Given the current volatility, I would be particularly loath to place those orders this weekend. You may find yourself selling low and buying high, just when you want to take advantage of some changes. I expect there will be some significant changes during the early going on this market on Monday. I don't know which way it will go, but you could get hammered either way.Most of us who trade monthly tend to wait until the afternoon on Monday or Friday to handle trades. I know that RayVT hardly ever trades on a Monday or Friday at all, but that's his particular mode of operation. I prefer trading in the afternoon, usually on the Friday when the screens come out.I've just not had great experiences with entering orders over the weekend to justify the process. In one case, I submitted five orders to take place. When I checked on the orders at 10 a.m., they had not yet been executed. I wound up cancelling and reexecuting the orders to get completed and got better prices as a result. All in all, I think the process can get sloppy.If you really have difficulty with the intraday purchases, you might consider going overnight on Monday for a Tuesday purchase. This doesn't affect your screen choices too much, and helps you to avoid the weekend order buildup that often takes place.Just MHO.Regards,StanL
Is there a consensus that placing my buy/sell orders for market opening is a bad idea? I "can" jump through hoops if necessary to accomplish this after market opening, but it definitely takes some doing. It is just much more convenient to do it over the weekend. *************If you are holding these stocks for a month or longer (which you should if using the screens) then it won't matter. A trader, however, (holding a few days or less) would never put in an order before the opening. Eric B.
IMO placing orders for market open are dangerous.You have potential problems from gaps up/down etc.Also you could end up without a fill or worse problems. There is also the normal 9:30 to 10:30 daily sleigh ride as well as a not unusual reversal at or around noon daily.The last few weeks we have sen the market try to rally approx 3 times per day and then falter. IMO the best times to transact are either during noon-1 pm.(Although this is when you may see a reversal) due to a lunchtime lull in trading or 3:30-4 pm which is when I personally feel you can get a better feel for what is going on. In any event this is micro timing since in the long run over the long haul it doesn't matter that much.BUT don't don't place buy/sell orders for market open.
Hi Scott,You asked:Is there a consensus that placing my buy/sell orders for market opening is a bad idea? I "can" jump through hoops if necessary to accomplish this after market opening, but it definitely takes some doing. It is just much more convenient to do it over the weekend. I kept a record of trades I actually made at market open over the period from February 22, 2000 to April 10, 2000.Over that period of time I made 110 purchases and compared the difference in price that I paid to the price at 11:00 AM.Over this period on average the ask price at 11 was 0.83% less than the price I paid at the open. The average, however, masks what was happening in terms of actual price differential.There was only one stock that traded at the same price at 11AM as at the opening. Those prices that were higher at 11AM (47) averaged 3.74% higher, with the greatest difference 22.5%.Those prices that were lower at 11AM (62) averaged 4.31% lower, with the greatest difference 19.0%.The difference between the price I paid for orders placed the night before to be executed at market open and the actual market open price was 0.09%. That is I paid 0.09% more on average than the opening price.Of the 110 purchases, there were 45 trades executed at the opening price, 23 for less than the open and 42 at more than the open.During this time frame, I made 97 sales at open. On average, the price at 11:00 was 0.4% higher at 11AM than the price at which I sold. The average difference between the open price and the price I received was -0.20%. I received 0.20% less on average than the listed market open price.None of the individual stock trades was for more than $3000. To sum up, for this size trade, my experience is that it doesn't matter whether you place the order the night before, or wait until mid-morning. Regards, Dan
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