Why You Should Never Use A Market Order

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I’m back with another lesson: Why you should never use a market order.

A market order means that you’re willing to pay whatever price the market is willing to give it to you. You could be overpaying by a dollar or more!

With a limit order, you specify the price you’re willing to buy up to. Using very specific limit prices can help you limit risk.

Don’t fall for the brokers’ bait! So many traders have this false idea they can get rich by saving on commissions … they won’t.

Remember that a majority of traders lose. Why do they lose? Mostly due to lack of preparation and not being meticulous.

I would rather teach you a process — a process where you manage your risk and trade hot stocks. But you do it responsibly, and stay educated.

So, use limit orders and use them responsibly. Remember, it’s ok to miss out on fast-moving plays. No stock is ever worth the risk of using a market order!

Do you use limit orders [or market orders]? Why or why not? Leave a comment below.

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Hey, it’s Tim Sykes, millionaire mentor and trader. Thank you for watching my videos. I hope that they help you. I want to share everything that I’ve learned over the years. You can check out more videos right over there, and also click ‘subscribe’ so that you can watch all of these videos, get that knowledge and become my next millionaire student.*

—————————————————————————————————————* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here: https://www.timothysykes.com/terms-of-service/

Comments

Timothy Sykes says:

Do any of you use market orders? If so let me know why, I'm interested.

PurposeTrader says:

thats why you need hot keys guys. it solves the problem

MTS says:

THANKS! Now I know…..

DEOVOLENTY SUCHIANG says:

very TRUE using market order is very bad idea or rush in the market to get excute..at the end they losing

Lewis Ford says:

I will use limit orders

Zachary Alves says:

Now i feel like an idiot because that's happened to me on robinhood i never thought of it this way though. makes sense hahaha

Ahmad Rosdi says:

You are very right….

Jon Agbatar says:

I’ll pray for you and your next of kin hahaha

TammyandSorin Salcianu says:

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TammyandSorin Salcianu says:

Hello…How can I get in touch with you "OWN THE CHAOS"

Brahimidea says:

By experience, thats true ,market orders makes you pay a lot more

Cmoney _S550 says:

I use robinhood but I use robinhood…..what are you guys using to trade?

teigrgwyn says:

at least with market orders, you're in and you're progressing with the move, even if it's making you less profit in the end, at least you can make money, unlike the limit order guy that keeps raising his limit trying to get shares and can't

i would argue you need to make sure the move beats the demand rather than the other way around, if the demand beats the move, you're going to pay too much and not make profit, because everybody else has already been reduced to skimming pennies, so why try to compete for scraps at that point?

if you find yourself trying to get into a stock where the demand beats the move, yes, a market order will skrew your profits, but a limit order will prevent you from even getting in… but you should instead choose a stock that makes an appropriately sized move for an appropriately sized demand, otherwise you're just chasing

takes too much time to calculate volatility mentally and set a limit accordingly, so hitting market order to get in immediately i argue gets you in quicker and you make more of the full move, and make more money

MrWebster773 says:

This is a informative video about the dangers of using market orders. My only problem with this video is that Robinhood actually has "limit, stop limit and stop loss " in addition to market orders.

But then again I'm just an internet random… who are you to take my word as facts (do your own research folks) 🤪

Jonathan Fox says:

Yes always use limit orders and double especially on OTC market stocks.. have learned the hard way.

The Storm says:

If I may add here…only in certain circumstances you should only buy on the ask and just let a trade come to you…

Ryan Burns says:

Except Robinhood does have limit orders. Not saying I would use Robinhood for penny stocks, but if your going to call someone an “idiot” you might want to have your facts straight first.

Kristofer Saly says:

Great fucking video!

Corbin H. says:

This has been explained by fausto 100 times…..if your doing big orders you use a big boys direct access broker,,,,not a payment for order flow broker….

Marianne is Here says:

I will never use marker orders

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