im new to trading and basically want to buy after market so that if the DOW is down, i can cancel my order and not lose money. The problem im having is that I am somehow losing money between placing the order and it opening on monday - even if the stock has gained 7 or whatever. I think i might be setting my limit order too high 10 above the last close price.
Any ideas?
Buying after market
I meant to say putting your order in after market close. You know how your waiting for a stock to take off but the dow keeps it down? Well when the dow finally turns green and that oversold stock gaps up between the previous days days close and the new day open...Its that gap up that I want to know how to gain without having to buy in trading hours the afternoon before. Do you know what I mean?...
I want to get my order in ASAP after market closes, so im in line for the gap up if it happens, but if the dow is down again, i can cancell my order and try again the next day.
I think you may be chasing something that's not available.
If you place a buy order after closing, the order will not do anything until the open. If the order bid price is high enough, it will fill at the opening price. The only way for this not to happen is to buy, during market hours, the day before the gap. If it were any different, gaps would not occur.
Trading's like that, it's based on expectations and probabilities, rather than certainties.