Gaps and Limit Orders
Generally all the Gap buys will fill as they are set as stop orders. If the stock is moving with a great deal of volatility but still on an uptrend, I will use a limit order and about 60% of those will fill. For gaps I don't margin, although I did some last year. I haven't margined all year in 98, and don't expect to until the December time frame. On my normal limit entry plays that I enter the night before, about 75% will fill, and when I check them at 10:15-30 I will set the exit stops or exit if they are losing and I don't think its a minor correction (in other words - if I made a bad call). But generally, I work with specific protfolio sizes $-wise, and stick to those amounts. part of the reason is for simple discipline. Too many times I have extended myself and gotten spanked for it (don't say it Judy...). It is much easier to manage, day or position trading, to set simple dollar limits and trade to that number. On about 1/4 of the time I have gone in and reduced the number of shares to get something that is moving that I want - although I don't have any real record of whether that was the smart move - my guess is that it probably is since I still do it.
My intent, especially in the market since mid-July, is to obtain the trade at the price I want to pay, so I stick to the $ size of each account. If it doesn't fill, there will be another stock tomorrow.
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