Author Topic: Questrade Order Types for a Newb  (Read 1744 times)

NorthernDreamer

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Questrade Order Types for a Newb
« on: October 13, 2016, 08:01:59 AM »
I've opened up a Questrade account, am waiting for my mutual fund money to be transferred into my registered accounts there, and in the meantime have $1000 in my TFSA to start buying. I am going to go with the Canadian Couch Potato "assertive" model market portfolio of 25% VAB, 25% VCN and 50% VXC. It feels so daunting to make that first purchase, I want to make sure I am doing it right, and I think I am overthinking things (again). With regards to "order type", if I'm buying for the long run, I just want to purchase stocks as a "market" order type with duration "day" correct? I found the Questrade FAQ on order types, which I think just confused me more.

PharmaStache

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Re: Questrade Order Types for a Newb
« Reply #1 on: October 13, 2016, 11:37:27 AM »

ooeei

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Re: Questrade Order Types for a Newb
« Reply #2 on: October 13, 2016, 12:01:36 PM »
http://canadiancouchpotato.com/2010/05/14/tips-for-trading-etfs/


You'll want to use limit orders.

Only use limit orders if the price of the asset is going to affect whether or not you buy it.  If you're going to buy it no matter what, use market orders (that's what pretty much everyone should be doing).  The problem with a limit order is you may place a low limit and wait for a drop to buy it, and that drop may never come.

OP, a market order just means you buy it at the current market price.  If buying for the long haul, it should be what you use pretty much exclusively.
« Last Edit: October 13, 2016, 12:03:32 PM by ooeei »

Goldielocks

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Re: Questrade Order Types for a Newb
« Reply #3 on: October 13, 2016, 02:37:47 PM »
I've opened up a Questrade account, am waiting for my mutual fund money to be transferred into my registered accounts there, and in the meantime have $1000 in my TFSA to start buying. I am going to go with the Canadian Couch Potato "assertive" model market portfolio of 25% VAB, 25% VCN and 50% VXC. It feels so daunting to make that first purchase, I want to make sure I am doing it right, and I think I am overthinking things (again). With regards to "order type", if I'm buying for the long run, I just want to purchase stocks as a "market" order type with duration "day" correct? I found the Questrade FAQ on order types, which I think just confused me more.

It is even harder to sell when you are ready to rebalance -- as you get to sell some of the "winners" to buy the "losers"!!!   You have now been warned that human emotions can affect behaviour!

But my main thought is:
:-)   Good for you.  Once you complete a few purchases, you will be very happy and comfortable with it.
I rarely use market orders unless I need something to sell NOW so I can reuse the money, or worried about more losses being possible. Market orders are processed before limit orders, so you could get a better $.

 I also tend to place orders after hours, so I use LIMIT orders to buy and sell, with a duration that can be as long as a month, if I only want to buy on 5% dips.  The opening price is often quite different from the closing price, and I want a guarantee of a min (or max) price.

  Each person has their own comfort level, though.