DTT Buzz
Exclusive Market Analysis, Alerts and Commentary from the DaytradeTeam trading staff
Wednesday, April 09, 2008
You CAN Be Picky In This Market
I often receive a question along these lines from DaytradeTeam members; "Is it okay to set entry orders at limits that require the stock to move 1% or more before the order will fill?" The answer, in my opinion of course, is yes!
Although the VIX is beginning to moderate, meaning the volatility in the market has contracted a bit, we are still in a volatile environment. This type of environment allows Traders to be picky with regard to their fills.
For example, BRCM recently broke a 6 month downtrend channel in a bullish manner. The day of the breakout, the stock saw a strong push to the upside. Had you placed a limit order that required a pull back to channel resistance turned support, you would have filled the next day.
Bottom Line: In this type of market, get picky with your fills!
Regards,
Nick Fenton
Sr. Trade Analyst, DaytradeTeam
p.s. Call 1-866-232-9872 and ask about our Learn and Master Technical Analysis seminar. This seminar will take your technical trading skills to the next level!
Although the VIX is beginning to moderate, meaning the volatility in the market has contracted a bit, we are still in a volatile environment. This type of environment allows Traders to be picky with regard to their fills.
For example, BRCM recently broke a 6 month downtrend channel in a bullish manner. The day of the breakout, the stock saw a strong push to the upside. Had you placed a limit order that required a pull back to channel resistance turned support, you would have filled the next day.
Bottom Line: In this type of market, get picky with your fills!
Regards,
Nick Fenton
Sr. Trade Analyst, DaytradeTeam
p.s. Call 1-866-232-9872 and ask about our Learn and Master Technical Analysis seminar. This seminar will take your technical trading skills to the next level!
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