Great question Jess. If one submits a market order, we are saying fill me now at any price. Just fill me (in or out of a trade). A stop loss says to trigger a market order but only if the stock gets to or below what you indicate in the stop loss area. If the stock doesn't go there, it is never triggered. I hope that helps. ^CH
Hi Jon. One situation when one might want to get in at a higher price is if the stock is approaching resistance and you don't want to enter the trade unless it has broken resistance. Some might put on a conditional order or use a buy/stop order. Then they could enter after that higher price was reached (after the breakout). If it's the price of the option and you want to buy it a little cheaper then one might change the price to 11.80 rather than pay 11.90. ^ CH
This session, and almost all our sessions are taught using thinkorswim desktop software. You can download it from the Schwab.com site under trading platforms. ^CH
@@tradertalkswebcasts Thank you. However I have Thinkorswim downloaded from Schwab and it doesn't look at all like your screens. Looks like I have to do a lot of configuration to the platform.
Hi Nicholas. The reason we put in stop losses was to have a predetermined exit point in case the stock moved in an unexpected manner. This is typical to identify a target exit and a stop loss exit. ^CH
Thanks so much your clear instructions on creating a bracket option order based on on the stock price! I needed this information!!
Hi KJ. I'm happy that was a good tip for you. Keep coming back. ^CH
Very clear mechanics of TOS exit orders. Thanks!
Thank you Tom! ^CH
Hi, what' the difference between putting a stop loss instead of market order?
Great question Jess. If one submits a market order, we are saying fill me now at any price. Just fill me (in or out of a trade). A stop loss says to trigger a market order but only if the stock gets to or below what you indicate in the stop loss area. If the stock doesn't go there, it is never triggered. I hope that helps. ^CH
Why are we paying a higher ask price than what is available. Example I observed that a stock was purchased @ $11.90 ask when the ask is at $11.80
Hi Jon. One situation when one might want to get in at a higher price is if the stock is approaching resistance and you don't want to enter the trade unless it has broken resistance. Some might put on a conditional order or use a buy/stop order. Then they could enter after that higher price was reached (after the breakout). If it's the price of the option and you want to buy it a little cheaper then one might change the price to 11.80 rather than pay 11.90. ^
CH
what software are you using?
It's look like think or swim
This session, and almost all our sessions are taught using thinkorswim desktop software. You can download it from the Schwab.com site under trading platforms. ^CH
@@tradertalkswebcasts Thank you. However I have Thinkorswim downloaded from Schwab and it doesn't look at all like your screens. Looks like I have to do a lot of configuration to the platform.
why put i a stop loss?
Hi Nicholas. The reason we put in stop losses was to have a predetermined exit point in case the stock moved in an unexpected manner. This is typical to identify a target exit and a stop loss exit. ^CH