WHY WE NEVER USE MARKET ORDERS
Review the post dated 8/23/17 for entry example.
Market orders are the first style of entry learned by a trader to enter their order into the market. You are simply telling market makers that you will but the stock at any available price.
We never use market orders, as we like to control our entry and buy into strength. See the post from 8/23/17. Notice what happen on earnings day – an indecision day candle. A market order would have put you in a position where price basically didn’t move and you could have potentially taken a small loss. Worse you could be holding until price gets back to your entry or your stop could have been triggered.
Something else to note: No gap down protection. Say a stock closes at $20 the day you decide to place an order. The following day sellers overwhelm buyers; it opens at $18. Your order will be filled and there is a chance in this instance that price could run lower. (IMAGE 2)
We only use bracket entries to protect our capital. If you need assistance in bracket order entry message us!