Dividend logo

I made a rookie mistake the other day. While buying shares of gold miner stock, I punched in the number of shares I wanted and hit “buy.” The order filled instantly, which made me happy as the buy was more of a shorter-term play. What didn’t make me happy was the fact that the purchase cost me more than estimated.

The reason why? I simply wasn’t paying attention to the kind of purchase order I was selecting.

While my error only cost me a small amount in the grand scheme of things, using the wrong trading order type could be a huge problem for some investors. A problem that could end up costing you thousands if you’re not careful.

Day traders should follow these seven big rules.

All About That Bid & Ask Spread

My problem and the reason for my headache with Kinross Gold (KGC ) comes down to a concept called slippage. Prices for stocks, or any asset for that matter, is driven by supply and demand. The more people want a stock, the more it is valued by the market and vice-versa. And since there is a finite number of shares for any given stock, even mega-caps, supply/demand is what will drive the price of the stock.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Photodune 514786 stock market diagram xs 300x212
News

The Wrap for February 22: Toned Down Trade Boosts Market

Despite being a shortened week – thanks to the President’s Day holiday – there was plenty of...

Premium Slowing%20earnings%20growth
News

Earnings Aren’t as Good as We Hoped

Given all the volatility that’s hit the market over the last few quarters, the last thing...

Premium Data%20center
News

Technology Giant With Strong Cash Flows Maintains Position on Best Dividend Stocks List

The technology sector is known for its fast growth, disruption and game-changing abilities. The...