| Blogs > 1ClassyLady > U r responsible for ur life |
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Do NOT use "market price", use "limited price" If you were in stock market, you saw the panic sell-off on Monday, August 24, 2015. At opening about 5 minutes, Dow Jones plunged near 1,100 points and all 3 indexes were down 8.8%. The market already down 4 consecutive days in the previous week and Chinese market also sharply dropped. USA investors were so fearful and started to panic sell-off, stampeded. I jumped in to buy a bio-tech stock and sold that stock within an hour. Dow Jones from down near 1,100 points pull up to only down 200+ points in 2 hours, then closed down 588.47 points. The reason I post this blog is to remind stock investors "DO NOT USE MARKET PRICE TO BUY OR SELL", "ALWAYS USE LIMITED PRICE". GE was sold at $19.37, but nobody bought under $22. HD (Home Depot) was sold at $92.17 but nobody bought under $107. JPM was sold at $50.07 but didn't buy under $57. In the normal time, Ask price (to buy) is $0.01 more than Bid price (to sell). If a stock is more than $500, the difference between Ask and Bid is about $0.05 - $0.10. However, if you put "market price" order, the market maker will give you the worst price (lowest) to sell or highest price to buy at that moment. I always use limited price to buy or sell. I decide what price I want to buy or sell. Please refer to the charts. The USA stock market has been 4 years without a meaningful 10% correction, so this time it came very sharply plummet. The "buy and holders" get used to bull market for too long and they forgot to sell stocks before the plunge.    Honesty is the best policy. |
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SF Harley Rider: Your stock, MDCO, is a winner at this time in spite of this volatile market. MDCO reached new 52 week high. Good for you. Honesty is the best policy.
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