subject: Day Orders – What Are Them And How To Use Them To Increase Your Profits [print this page] Day Orders What Are Them And How To Use Them To Increase Your Profits
There are many types of order that you are able to use in the markets. Each of them has their purpose and its use in a specific time and situation. If you want to be successful when trading and/or investing, you should take time to either read about it all these types of orders or get in touch with your brokerage firm and ask them how explain it to you thoroughly. In this article I will be explaining one of the most common type of order.
Day Orders
In this type of order you will specify the amount of the stock that you would like to buy and at what price. This order, since it is a "Day Order", will be only valid for this day and this day alone. So, this type of order in when you see a stock price move that you would like to that advantage only in the day that you are seeing it. Maybe you know and feel it that tomorrow the situation might not be the same and you do not want your order flying around next day just to find out that you bought that stock that today is plummeting.
Day orders are part of an extremely important arsenal that a trader must have and understand in order to be able to earn some money whilst trading in the markets. These orders will be cancelled by the end of the day so you can relax if you need to put an order but won't be able to check it again today or tomorrow: your brokerage firm will cancel the order automatically by the end of the day protecting your investments, and your account, from buying some undesirable stock.
Conclusion
These orders are an extremely useful type of order that will definitely improve your trading skills. They are different from Good Till Canceled type of orders where these ones stay active until you manually cancel them. Both of them have different uses in different market situations. Day orders should be used when you believe that a certain stock move is only valid for that day as a potential trade. Then, if you are not filled by the end of the day, the order will be cancelled and you shall be able to insert the order once again if you still believe that the market is offering the right conditions for your trade.
