Shairafzal Khan asked 3 years ago
I have two question
1. Today you gave buy alert of QLD & SSO when the market was about to close. When I was entering price alert for buying into my trading software the price was already up by 10 cents from your buy point, so I decided not ti buy it. My question is how much cent is fair to chase from your buy point on pullback or small setup and long base breakout.
2. Suppose you buy QLD when the market closes, how do you know the stock is back to your buy point when the market is closed. How you look for stocks when it comes to your buy point during the after hour trading.
1 Answers
Owen Staff answered 3 years ago
Hi Shairafzal,
This happened to me, to some degree, today as well. By the time I set up the order and routed the price had moved about a dime. While I don't like losing that extra 10 cent edge, I wanted to be in the trade due to the way the market was closing and that I'm anticipating a continuation, to some degree, on Thursday. I'll allow 10 to 20 cents, thereabouts, on trades. There is always going to be some kind of delay given the computer interface, etc. Sometimes I'll route a limit order in extended hours to either get filled or add to a position that didn't quite fill enough shares.
I would not be chasing 50 cents or anything like that, but a dime to 20 cents seems reasonable. We get into these trades near the close of the day with the anticipation of a slight gap up and continuation. Paying up a little for that seems reasonable.
Owen
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