InvestorQ : Why the choice of your order makes a big difference to portfolio performance?
Radhika Arya made post

Why the choice of your order makes a big difference to portfolio performance?

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3 years ago
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The order type can be a lot more important than you can imagine. When you trade, you do so on small margins and small spreads. The nature of orders placed can make a big difference to your eventual performance because the impact of these order types adds up to quite a bit. You may not realize but the choice of your order type based on the market conditions makes a lot of difference. When you sit down to write your daily trading diary, you will realize that a lot of the shortfalls in performance actually arose out of the wrong type of order place. In fact, that is where it all starts! Trading has various costs and wrong orders are one of the hidden costs of trading. Try and minimize it.

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