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bill wolfe wrote:
>
> If this is a repost please disregard it did not get back to me.
>
> Rts,
> I'm new to trading but I have been actively trading since June 26, 1997.
> All of my trades up to this point have been in options. However, this
> morning (after my analysis) I decided to short the Dec Wheat market. I
> felt that after losing 4 pts Friday it would rally a couple pts then
> head south. At 8:30am central time (before the opening) I placed an
> order with my broker to short this market from 374.00. Guess what
> happened? It opened at 373.75 went to 374.00 and went as low as 366.50.
> BUT, my broker informed me that I did NOT get filled! Can anyone tell me
> why I didn't get filled when my target price got hit?
>
> Thanks in advance,
> Bill Wolfe
Bill,
Let's say that there are 1,000 contracts ahead your order to sell
at 374 and that a 5 lot buy comes in at the market and pays 374. Now
what do you think are the odds of your 1 contract getting sold when
there are 1,000 more at that price? This is why it pays to be not quite
so smart. If you think the market is going to make a high at 374 you
may
want to enter your sell order at 373 1/2. Remember, the locals on the
trading floor have to make a living too. Don't begrudge them their
fractions of a cent when you are going to make fractions of a dollar or
more. For those intending to seriously pursue trading as a profession,
a day trip to the trading floor is highly recommended.
Cheers,
Norman
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