About Market orders... and not to disagree, but MARKET orders are a very important and effective tool to use when you understand how and when to use them, and when not to use them! Many of my best fills are buying as the stock is near or at the bottom of retracements (dips). An example is today, with VTPI. I added back 5000 shares to my position today, placing MARKET orders as the stock was nearing my perceived bottoms (based on my "amateurish" charting and TA analysis per that basher yesterday) and both times I got better fills than the ask price at the moment I clicked "ok" to place my order! Got .16 when the ask was 16.5, and got 15.5 later when the ask was .16! Of course your broker has to be solid, as well.
Many other times, when the only way you could get a limit order filled is to place it above (or below if your selling) the market price, and the price is stabilized (which you also can identify and recognize during the day by the "action", MM's positions and "flat" on the daily interval charts) the MARKET order is very effective, and gets you a good, if not best, and immediate fill.
HOWEVER, it's the MARKET orders placed (usually early in the am or shortly before close) that, 1)absolutely kill a stocks price and momentum, or 2) artificially raise the price and cost you a bundle.
The worse thing you can do is "run scared" and place a market order to get out in panic. That's when the MM's have you by the tail and, YOU LOSE.
All investors should, nay, must, learn NOT to sell out in a panic using a market order; 99 times out of 100 it's disasterous, and wrecks the price of the stock, at least for the short term. It's what we see occur many times right before close, like today with GAAY (and VTPI during the day) where MARKET orders were placed when the limits orders didn't (or don't) get filled and panic sets in (Daytraders getting out, or HAVING to get out running the risk of restriction due to a "free ride" transaction (it's happened to many of us), PROFIT taking, or simply deciding for whatever reason that you must get out, now!
Just think, if everyone could be more in control of their emotions, and in turn their trades, learn not to overreact and panic when the MM's start their shake, or the bashers (and/or shorters) arrive on a thread, or decide they must jump on board this moon shot "right now" then we'd have a much more orderly and stable market!
just my two cents....
looking for a great day tomorrow,
dabloc
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