Investing 102

[GregWeld]

Just wanted to personally thank Todd for investing in the stock market and killing us all in the process!! HAHAHAHAHAHAHAHAHA



Welcome to learning about the little man on Wall Street Todd!!

[Vegas69]

Originally Posted by GregWeld

Just wanted to personally thank Todd for investing in the stock market and killing us all in the process!! HAHAHAHAHAHAHAHAHA



Welcome to learning about the little man on Wall Street Todd!!

100% Personal Responsibility.. See my healthy 101 thread for details. ha ha ha

[Vortech404]

Question about limit orders?

Are you guy's putting in the last traded price? How much below? %

Let's say I'm interested in purchasing 75 shares of KO. The last trade price was $39.40. What would you put your limit price at $38.89 because that was the after hour price?

Thanks
John

[GregWeld]

Originally Posted by Vortech404

Question about limit orders?

Are you guy's putting in the last traded price? How much below? %

Let's say I'm interested in purchasing 75 shares of KO. The last trade price was $39.40. What would you put your limit price at $38.89 because that was the after hour price?

Thanks
John

Okay -- so this will not be easy to say so that you "get it" but I'll try - just don't take offense because in order to make it NICE -- would take a page of explanation.

It just doesn't make a hill of beans doing a limit order for 75 shares --- when you do the math --- if you save 10 cents --- you're talking 7.50 total on the buy.... in the long run --- that's just not what is going to make or break an investment.

I'm buying 20 to 50 THOUSAND shares --- limit orders are then "real money" when you do that 10 cent math....

Having said that --- I'll answer your question --- I put in the lowest price of the day -- and do a day only trade. So if it's not filled - I can redo it the next day.

[Vortech404]

Hey Greg,
Thanks for your reply. I know my purchases are really small compared to yours. I thought I read on another page to always use a limit order and I was curious to how people came up with what they wanted to bid.

I guess if you are buying in small quanities to just buy at market price and get the shares.

At least now I know later when I'm buying 20-50 thousand shares to use limit order with the lowest price of the day!!

Thanks for all your help

[GregWeld]

Originally Posted by Vortech404

Hey Greg,
Thanks for your reply. I know my purchases are really small compared to yours. I thought I read on another page to always use a limit order and I was curious to how people came up with what they wanted to bid.

I guess if you are buying in small quanities to just buy at market price and get the shares.

At least now I know later when I'm buying 20-50 thousand shares to use limit order with the lowest price of the day!!

Thanks for all your help

My point wasn't to brag about the size of mine versus yours -- it was merely a reference of when a limit order is important and why they're used. There's real money to be saved when you're upping the ante a bit -- and on something in the 100 share range it's just really not very important and I feel that what IS important is just to get going and investing.... because most people don't have the time to be chasing shares daily etc. That one day - when you don't get your order filled --- and the next day the shares run a buck a piece! Now what did you "save" -- you just cost yourself a buck a share by trying to be "cute" and save 10 cents a share. Of course it goes the other way too -- but you get my point.

The other thing that people do is try to "time" the "EX" date of a dividend paying stock because the shares generally trade down the amount of the dividend being paid... thus you effectively pick up the dividend by just getting the discounted price that day ---- the problem with this is A) you have to wait for that date --- and in the meantime the shares may have run more than you're trying to "save" --- and B) once again - do you really have the time to spend chasing this small amount (in total dollars). If you're trading big blocks of shares 1000 or so per - then maybe - but not on 100 or 200 shares...

[GregWeld]

So since we were discussing real estate investing --- I view this "news" both great but also really worrying. Demand for any product - regardless of what that is - has a ripple effect.... Housing demand will make us feel good IF we already own a house... but will also lead to higher interest rates... Which is good if you're already retired... and not so good if you want to buy something with borrowed money. LOL


http://www.bloomberg.com/news/2013-0...ven-years.html