The U.S. Securities and Exchange Commission warns investors that buying
and selling "hot" stocks that have the tendency to rise and fall
quickly can be dangerous if unexpected delays occur. Without even
realizing it, investors can find themselves losing money.
The U.S. Securities and Exchange Commission warns investors that
buying and selling "hot" stocks that have the tendency to rise and fall
quickly can be dangerous if unexpected delays occur. Without even
realizing it, investors can find themselves losing money.
Just because you can access your account online, doesn’t
necessarily mean that your trades are instantaneous. Limit your losses
in these fast-moving high tech markets by:
·knowing what you are buying
·understanding the risks involved in your trade
·know the trading process for fast-moving markets
Guard against some of the most common problems investors encounter in fast-moving markets.
Market Orders vs. Limit Orders
When stocks drop or soar suddenly, being stuck in the process of
trading can mean the difference between making a sizable profit, and
losing a bundle. Delays can develop in fast-moving markets, slowing
down executions and trade confirmations. What you thought you were
selling at one price, may be end up selling for quite another. Avoid
buying and selling at prices higher or lower than you expected by
placing limit order instead of a market order. Limit orders are
executed automatically when they reach a set upon price, unlike a
market order which is filled at the price that second, not necessarily
the price set at purchase time.
For example, when you place an order for a $10 stock, placing a
limit order will ensure that you don’t end up paying $35. The
same is true for selling. The stock will sell when it hits the target
limit, eliminating sudden losses. The risk here is a loss of control to
hold certain stock just a little longer in the hopes that it will
continue to rise. Once it hits the selling target, it is sold.
Remember, Online Trading Isn’t Instantaneous
Trading online can feature its own dangers. Problems with modems,
servers, or delayed broker-dealer hardware can all cause a delay or
failure in an immediate stock trade. Know what trading alternatives
your firm offers (telephone, fax, etc), in the event a technological
problem interrupts your transaction.
Avoid Double Buying/Selling
Too often investors mistakenly think that their order did not go
through and place another order. This can cause them to buy stock they
did not want, or even sell stock they did not own in the first place.
Be sure to check with your broker on what to do if you aren’t
sure if your trade has gone through.
Choose the Best Broker
Buying and selling in a fast-paced market takes a broker
who’s capable of handling transactions quickly. There are no
Securities and Exchange Commission rules that require any trade to be
executed in a specific amount of time. Finding a broker that
doesn’t delay is up to you, the investor. Take your time and
research brokers carefully in order to avoid losing important assets
unexpectedly.
About The Author
helping people build more money in their retirements. Now he has taken
his successful strategies to a new level by offering teleseminar
courses to help people make a better retirement for themselves than
they ever thought possible. For more tips and strategies see http://www.retirementwealthforyou.com.
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Distributed by Hasan Shrek, independence blogger. Also run
online business ,matrix,internet marketing solution ,online store script .
Beside he is writing some others blogs for notebook computer ,computer training ,computer software andpersonal computer,Cyber Forest,internet weapon,talk about business ,business is my blood ,hasan's blog ,cyber business
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