Limit orders have an affect ?

tanveer · Dec 2, 2008

Hi guys, this is my first post here. So lemme start by saying thanks for all the helpful posts on here it has been of great help, now for some super noob question infact 2 ...

1) Say i place a limit sell or buy order ... which is well for sell higher than whats being traded and for buy lower than whats being traded ... will me placing these orders have any affect on the trend or the price of the stock ? ... For some reason i keep thinking that if i do this then i will mess the market or something haha !

2) This one has been asked and i've searched with no answers ... what is a good screening technique or filter to find stocks for day trading i.e stocks that tend to have large fluctuations throughout the trading day ... on a daily basis almost !

Thanks alot for listening guys, and for those that reply ... thanks

!

tj

Rhody Trader · Dec 2, 2008

tanveer said:
1) Say i place a limit sell or buy order ... which is well for sell higher than whats being traded and for buy lower than whats being traded ... will me placing these orders have any affect on the trend or the price of the stock ? ... For some reason i keep thinking that if i do this then i will mess the market or something haha !

Unless you're swinging a very big stick, you're orders in the market aren't going to do anything of any consequence to prices.

2) This one has been asked and i've searched with no answers ... what is a good screening technique or filter to find stocks for day trading i.e stocks that tend to have large fluctuations throughout the trading day ... on a daily basis almost !

The Average True Range (ATR), or the normalized version of it, is a great tool for finding stocks that are moving intraday.

tanveer · Dec 2, 2008

Thanks Rhody, then i shall place my limit order and research good stocks

!

new_trader · Dec 3, 2008

Rhody Trader said:
Unless you're swinging a very big stick, you're orders in the market aren't going to do anything of any consequence to prices.

Rhody,

I interpreted the question about limit orders differently. I get the imprssion the OP was asking if a resting limit order would have a direct influence on prices and I don't believe it would, regardless of size (Assuming it is out of view of DOM).

Rhody Trader · Dec 3, 2008

new_trader said:
Rhody,

I interpreted the question about limit orders differently. I get the imprssion the OP was asking if a resting limit order would have a direct influence on prices and I don't believe it would, regardless of size (Assuming it is out of view of DOM).

The bottom line is that someone along the chain somewhere will see the order sitting there. If it's big enough it could influence decision making.

raysor · Dec 3, 2008

Rhody Trader said:
The bottom line is that someone along the chain somewhere will see the order sitting there. If it's big enough it could influence decision making.

large limit orders must have an effect, I read that the LSE is preparing to launch a "dark order" service which will allow anonymous orders to be matched with visible orders. Of course another way to hide a large limit order is to put the trade on as an "iceberg"

dilesh23 · Dec 3, 2008

tanveer said:
Hi guys, this is my first post here. So lemme start by saying thanks for all the helpful posts on here it has been of great help, now for some super noob question infact 2 ...

1) Say i place a limit sell or buy order ... which is well for sell higher than whats being traded and for buy lower than whats being traded ... will me placing these orders have any affect on the trend or the price of the stock ? ... For some reason i keep thinking that if i do this then i will mess the market or something haha !

2) This one has been asked and i've searched with no answers ... what is a good screening technique or filter to find stocks for day trading i.e stocks that tend to have large fluctuations throughout the trading day ... on a daily basis almost !

Thanks alot for listening guys, and for those that reply ... thanks !

tj

is someone planning to spoof the market ? i hear it doesn't work

:cheesy:

Limit orders have an affect ?

tanveer

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