Anyone have a good approach for the best time of the day to enter a buy-order?  I often see prices spike or drop when the market opens, and so I may get a too-high price or a too-low price from my market orders, or my limit orders don't get executed.  

Do most of you enter orders after hours?  Market orders or limit orders?

Or do you buy just before or just after the market opens?

(Please don't answer if you're a novice like me!  :)  )    Thanks!

couple of methods for daytrading:

mark of yesterday's low and high.

when market opens, define a range over the first 1,2, or 3 5min, or 15min bars (you'll find out through experience what works best for you)

possible plays:

when price opens below yesterday's low, and breaks it to the upside, a long opportunity, and vice versa.

if price breaks out to the upside of the range of the 1st couple of bars, a long opportunity, and vice versa.

Take note of the close of the european markets, during the day, often times a reversal occurs at those times.

Of course

Missed your "not day-trading" comment.

I think it applies to both swing and daytrading, to avoid the violent swings in the 1st 20min or so. Market orders? I would avoid those as well. Let the price come to you, don't chase with market orders.

Hi P the Great! Thanks for your answer.  How, in general, do you decide what your limit order price should be?

I barely ever trade shares. Options only for me. I try to anticipate where a stock either reverses trend, or breaks out of a range. So I know in advance where I will place a trade. I trade options that have a narrow spread, and usually place my limit order between the bid/ask. Maybe others that trade shares can give you their opinion.

thx.

This may some stupid, but actually it's not.  You use the same technical criteria that helped you select that stock to decide on your daily basis, and then make sure it is applied on lower timeframe basis.

For example, let's say you selected a stock that was moving up through the stochastics lower boundary of 20 on a daily chart.  You might then choose a 30 minute chart and say you will not purchase the stock until that intra-day chart meets the same criteria.

 Other little tidbits to save you money.

For the most part never trade during the first 30 minutes of the market.  You will regret it more often than not.  Allow the market to settle down.  The pros call the first hour amateur hour for a reason.

 If you know there is important economic news coming out during the trading day it is best to wait and see how that news is received.

If you are going long and your stock has moved up during the morning hours wait until lunch time 12-1:30 EST to look for a place to buy.  Typically the lunch period is counter-trend to the morning trend.

Always be aware of when your stock is going to report earnings, and whether it is during market hours, before, or after the bell.  You want to be out of the stock before it reports, otherwise you are just gambling.  (does not apply to long term investors)

There is nothing worse than to have the perfect setup and then not get filled because you placed a limit order.    I use market orders to enter, but with one caveat.  Look at the spread between the bid and the ask during the day.   If the market maker has an imbalance between buyers and sellers that spread will widen to much more that .01 or .02 cents.  Sometimes you will see it .20 cents or more.  In these cases it is much better to place a limit order and let the market maker find your bid. 

Never chase a stock.  It will increase your risk, and this is what trading is all about.  There will always be another opportunity that you will be able to find.  Just like women, there are many fish in the sea.

Hi clacid and pthegreat - great tidbits, thanks!