Commsec and ASX EOD trading questions

[JJZ]

Hi All, about to make the jump to real trading I have a couple of newbie questions first...


I was planning on doing my research and placing my orders and stop losses nightly. I was poking around on the commsec platform and noticed a few things I am not sure how to deal with:


1. If I place an order the night before I cannot use "At Market" I can only use the "Price Limit ($) option.

How people determining the price limit, assuming if i set the limit higher my order will be filled hopefully at a lower cost than my limit? Do people just tack on say 3-5% to the previous close to hopefully ensure the order is filled?

I also saw this on the Commsec website "Please note that an 'At Limit' order will not be accepted, without any advice to you, if we consider the limit price to be too far away from the prevailing market price of that stock."

Can some explain what it means?

Does this just mean if my Limit is too far from the price action they will ignore it? if so what is too far? 5% ? 50%?


2. Stop Losses/Conditional orders.

If I am trading EOD, It doesn't look I can place a conditional order until I have purchased that stock. That means I will be running without any stops for 24 hours! or am i missing something?


3. If I really try to I can probably login during trading hours 95% of the time, should a really be aiming to do my trading when the market is open? or are the above issues really trivial?


Thanks for putting my mind as ease.

JJZ

 

[Roller_1]

Hi JJZ

1.
I use IB not commsec, but using a buy limit order like you said above the previous close will allow you to get filled in the opening auction, where a MKT order will only get filled once price has traded. So a LMT order will probably be better if you are after a fill on the open. I use 10% to ensure i get filled and IB doesn't have any issues, that is for a sell though i use it for.

2.
It sounds strange that you can't place a stop in the market before you take the trade. If you want to trade EOD and you have to be available during market hours that sounds a bit counter intuitive. If commsec can't provide the facility you might need to change brokers? Plus Commsec comms will drag on your account if you are trading a fair bit ( I believe they are fairly high).

 

[Gringotts Bank]

CMC has what you need.

Be careful of placing your order to trigger at next open if trading anything outside the top 20ASX. Bots will see your order and make you pay through the neck by manipulating the auction.

 

[Roller_1]

CMC has what you need.

Be careful of placing your order to trigger at next open if trading anything outside the top 20ASX. Bots will see your order and make you pay through the neck by manipulating the auction.

I am not sure how JJZ is trading but even for short term EOD trader 3-5 days is this really an issue or just over complicating something that isn't that complicated - buying on the open? The old saying "don't be a dick for a tick". I could understand for a day trader maybe

 

[Gringotts Bank]

I am not sure how JJZ is trading but even for short term EOD trader 3-5 days is this really an issue or just over complicating something that isn't that complicated - buying on the open? The old saying "don't be a dick for a tick". I could understand for a day trader maybe

Not that important if he is discretionary. Not important at all if he is a longer term holder.

But if you add just a single tick to a short term system backtest, you'll see that it can turn something profitable into something unprofitable. To say nothing of multiple ticks 'stolen' in an auction. So it does matter for most people.

 

[Roller_1]

But if you add just a single tick to a short term system backtest, you'll see that it can turn something profitable into something unprofitable. To say nothing of multiple ticks 'stolen' in an auction. So it does matter for most people.

That's why you don't want a system with a expectancy % per trade that is too low hey, probably goes for discretionary and mechanical systems