So here's why LIMIT ORDERS don't always work the way you think/want them to.
This morning I thought I'd add 3000 shares of British Petroleum Prudhoe Bay (BPT) to the 5000 shares I already own... I entered a limit order at $86.70 against an ASK of $86.96 --- last trade was showing as $86.75..... so I'm a nickel under the last trade and .26 under the ask price.
By the time I checked my order status - the shares were trading at $86.95
So had I just entered a "Market order" I might have scooped up some shares... as it was --- SO far I'm going begging and my limit order is sitting with only 100 of the shares being "filled" (bought at my limit price).
So here's my point --- there were shares trading at $86.75 (the last print) and I chose to bid under that --- and while trying to be "cute" -- the shares ran another .20
I canceled the order. Why? Because I don't buy on UP days. I'll wait.
I do this stuff EVERY DAY -- ALL DAY.... It's my first love and a hobby. I've been doing this all day every day for years... MY POINT?? You guys DON'T... and I'm buying larger amounts of shares -- you are not.... is it really worth your time to babysit the market for .20 on 100 shares (a whopping $20). And by the way -- I just showed that messing around probably cost me that $20 because the stock ran away from me.
Now --- I'll stay on top of it and I will get my shares eventually -- and before the next X date. But would you?? Or would you get busy and forget all about it -- miss the X date (thus missing a $2.00 a share dividend). This is where you need to learn about YOURSELF and how you invest.
If you're the type that would have got busy and forgot all about the shares --- thus the buy -- and you'd put in a "cute" limit order -- and now you just missed out on "A") the run and "B") the $200 dividend payment for the quarter.... was the $20 "savings" you were trying to get worth it?
Just sayin'
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