Why you should use Limit Order when you’re undecided

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Mar 26 2008
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Seriously, if you have this problem of falling in love with your portfolio, either stocks or options, you’ve better leverage on the limit order function to enter the price(s) you desire to sell or buy. It’s not too much to say that almost all the investors who trade on behalf of their own account are incapable of putting their emotions (greed and fear) aside. This is normal so don’t feel bad about it. Regardless of all the changes since the invention of stocks trading, one thing remains unchanged – human emotions.

My trades, AAPL May 135 Call Option, were triggered and hence all my options that expired on the month of May with strike price of $135 were closed automatically. In fact I lost more money (gained less) by constant monitoring than by leaving the STC (Sell To Close) to the system. Hey, all these brokerages invested millions of dollars for such functionalities so it would be very cruel if we didn’t use it. If you’ve been investing or trading long enough, you should realized that the major problem why traders lost money (or made less money for that matter) was because they do not know when and how to “SELL”.

Apple ProfitEvery Tom, Dick and his dog knows how to buy or open a new position. Strangely when it comes to sell or to close existing position, he or she tends to think for ages yet couldn’t find the courage to click the button to sell or close the position(s). Anyway, it appeared Apple Inc. (Nasdaq: AAPL, stock) is riding on the bull and has breached the $140 resistance and heading towards $148 a share. Above this level ($148), all hell is expected to break loose and would be climbing to its’ previous $180 with pit-stop at $160.

As of writing, Apple Inc. Google Inc. and Baidu.com Inc. are all in the green territory even though the Dow and Nasdaq are in the red. I’ve mentioned in my previous article why I’ve chosen Apple Inc. instead of Google Inc. and Baidu.com Inc. for the Call Option. Open up your trading chart and watch how Apple Inc. skyrockets as of current moment – it’s a 30 degrees intraday uptrend. Wow! How I wish my Apple is still available (there I go again *grin*). Let’s see if there’s any more money to scalp from here – AAPL May 140 Call Option anyone?

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