What a Day! I just wanted to ask the question on what kind of orders would be best for buying breakouts. I tried using a limit order at the breakout level, but I usually find that buy the time the order is sent, the price has run way up and I end up chasing. Today, I tried using a stoplimit order on $LEI. I set the stop at the $8.00 b/o and the limit at $8.05 to catch some of the run up, but not go to far. I only got 150 out of my 2k shares before it hit $8.40. I know Tim says to buy into strength on b/o with volume, but I can never get the order out in time. Is stoplimit the way to go? And should I increase the limit out a little more (based on position size and volume)? I just wanted to get some more information on what works.
@Arussell125 @traderTK If the spread between the ask and bid is very small, then you maybe could/should use a market order, if its moving too fast that is, if not then put a limit order like .01 or .02 above the current price
Also remember that most breakouts aren't perfect. A lot of times they will break out and then pullback, sometimes possibly to a prior support level. A lot of times you will have the opportunity to buy at the b/o level or even the prior support level. If it is a fast mover but you still want in, then go smaller size and remember your risk level.
This helps a lot and makes more sense
Normally i would opt for the next support/consolidation level. But if the stock is having b/o like LEI or KBIO that could be pretty far. The idea is that i use this stoplimit order when a stock has proven to run far and fast off of its b/o.
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