What is the best way to buy stock, Market order or Limit Order ?
(I plan to buy stock online, but want to know which way is the best?
Market order or Limit Order ? What are the difference?
Thank !)
Answer:
I use limit orders at Scottrade almost exclusively. At Scottrade at least, they are the same price as market orders, $7.
The only time I ever use a market order is when the stock price is falling too fast. For example, if I bought a stock and it was falling and I needed to sell it fast, a limit order might never execute.
What I usually do to buy a stock is check the price range it has been at lately, and place a limit order at about 5% below the lowest price.
What I usually do to sell a stock is check the price range it has been at lately, and place a limit order at about 5% above the highest price.
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