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An Unexpected Glitch in Limit Orders
Rating: 3.00 (1 votes)
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In my last post, when my month-old buy orders expired for my "sell high, buy low" stocks, I debated whether to give up and simply buy at market price or to try a limit order again. In comments, both Thomas Armistead and Russell Krull voted for another go-around of limit orders. In the long run I agreed. Might as well keep playing the strategy longer to see what happens. Today I was astonished to see that my buyback order for Cleveland Cliffs (CLF) had been filled even though I despaired of this stock ever sinking to the level of my limit order. What happened? It split! It split! So of course my buyback strategy "worked". Sort of. I just bought back at my lower price, it is true, but in a sense I got only half the value planned. In a way. They say that when a good stock splits it tends to rise right back up to pre-split prices. Maybe this will still turn out to be really profitable in the long run. But if I do the math I may find I would have done better not to sell in the first place. | ||
Comments (1)
But, you did keep the market in pretty good shape.
Hope the CLF buy works out for you. Seems like an open limit order should adjust for a split. If you didn't want the buy, I suspect M-tocracy will cancel it for you.
Rated your post a '3' only because they don't have a 4. :)
Posted by Russell Krull | May 16, 2008 5:11 PM