If you've made it to level 2 in stock trading, you're probably well on your way to understanding and mastering the techniques needed to be a successful trader.
However, sometimes we're still not able to get in on a stock at the price we want.
I'd like to give you some specific strategies that you can use today, and any day you trade, in order to execute faster and lock in the shares that you want to buy or sell at the right price.
The most basic principle is to always utilize limit orders.
Limit orders, which are different from market orders, allow you to choose a specific price to buy and sell out.
When the price of a stock is shooting up and spiking, (or if you're shorting and the price is falling and you want to get out quickly), you'll need to make sure you position the limit.
If the trend is going up you want to make sure you're putting your limit order at 1 cent or 2 cents above the current order price.
You might make a little less profit, but you're going to get your trade executed and get in a position.
Sometimes you may find that when you do a limit order at the dollar point during a pump and dump, you get stuck, worried, and you hesitate.
Making sure you're prepared and you know the best tactics will help you avoid hasty decisions that are not profitable.
When you're doing OTC VV or pink sheet buy and sell, you will see that there are different market makers on both sides.
You have to make sure that you understand that it could just be the market movers, setting up the blocks in a certain way to manipulate the price.
It's good to always keep this in mind.
I'd like to give you two specific ways that you can increase your trade speed so that you can lock in the right executions which are:
This requires a slightly higher minimum than usual, but it's worth the payoff.
This next step means you are able to trade with interactive brokers.
These are very fast executing platforms with a wealth of resources.
This will allow you to execute your orders faster.
These are just some quick tips on how you can utilize level two to have faster trading execution.