So you want to day trade stocks? You’ve come to the right place. In this blog post, we’ll tell you all about fantasy orders and how they can help you make big profits in the stock market. But first, let’s start with a little bit of background.
What Are Fantasy Orders?
A fantasy order is an order you place with a broker that doesn’t get executed immediately. Instead, it’s a limit order that stays live in the market and only executes when the stock price reaches your desired limit price. This type of order is beneficial for day traders because it allows you to place your orders in advance and then wait for the price to come to you.
A fantasy order is when you place a limit order…
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- Above the ask to sell at the desired price when the stock reaches that price
- Below the bid to buy at the desired price when the stock reaches that price
Why Use Fantasy Orders?
Fantasy orders have several advantages over traditional limit orders.
First, they give you more flexibility in terms of when you execute your trade. With a traditional limit order, you are placing the order at the exact time and price you want your order to be executed. This can be tricky to do if the stock price is moving very fast and could jump your order, and you don’t get the execution you wanted.
With a fantasy order, you can set your orders in advance at whatever price you’re aiming for and then let them execute when the stock price hits that level.
Another advantage of fantasy orders is that they can help you avoid slippage.
Slippage happens when the stock price moves quickly, and your order doesn’t get filled at your desired price. This can be a big problem for day traders because it can eat into your profits (or even turn a profit into a loss). Using a fantasy order, however, you can ensure that your trade gets filled at precisely the price you’re aiming for.
Another advantage of fantasy orders is that you can take advantage of panic selling and euphoric buying.
Often, a stock will panic and wash out, only to rebound so fast that you can’t get in quickly enough. Fantasy orders fix that problem. You decide where you would like to buy, place the limit order before the price has reached those levels, and wait for the price to “come to you,” as we say.
Lastly, fantasy orders can help you control your emotions while trading. It’s not uncommon for emotions to run high when trading stocks. When this happens, it’s easy to make impulsive decisions that can cost you money. You can take some emotion out of the equation by pre-planning your trades and then letting your broker execute them when the time is right.
Note: Fantasy orders combined with technical analysis is how Alex made $145,000 in 17 minutes trading meme stock $BBBY. Check that post out here.
Bottom Line
In conclusion, fantasy orders are an excellent tool for day traders who want more flexibility, better execution prices, and less emotion in their trading. If you’re new to day trading, we recommend attending our free 1-hour webinar, where we talk about fantasy orders and how we use them for trading. And if you’re already using them, ensure you’re familiar with all of the benefits (and risks) before placing any trades.
Thanks for reading!