Using Stock Market Limit Orders

Using Limit Orders

When it comes to buying and sell stock there’s far more than one way to do it. Most investors think only of market orders, which is where an investor just goes into the market at that exact moment in time and buy the stock at the current price. There’s nothing wrong with market orders. It’s the absolute quickest way to buy or sell a position, but it can leave one exposed to the random fluctuations of the market.

Limit orders are a free option for investors. They can buy or sell a stock at a predetermined price set by them. If you are waiting for a pullback in a stock, using a buy limit order set below the market can be a very useful way to make sure you enter the stock at the right time. The alternative to that is to watch the market continuously hoping to catch that move down, and making sure that the discipline is there to pull the trigger if the move down occurs.

Let’s work through an example of limit orders

Working through limits and the SPY
Look at the trend line at 254.60

There seems to be some downward resistance at the 254.60 level in SPY. Let’s assume that we’re bullish, and if it happens to break that level we would like to add to our position since any break below we believe is temporary. We could watch the market, but we all have jobs that aren’t trading stocks and so that could be difficult. There is also the temptation when stocks starting going down even if we want to buy and are bullish in the long run to start getting greedy and hoping for a better and better entry. Or, we may even start to doubt our thesis in the first place. The limit order preempts any of this second-guessing.

If we placed the limit order just below where we thought resistance was it would be a great way to pick up some more of the position on sale. A good limit buy may have been at 254.50 . Again we’re just trying to add to your position on down ticks. This example is of an intraday chart, but the same theory holds for longer time frames as well. If you reversed the whole idea we could also use limit sells slightly above where we thought resistance was to accomplish the same goal.

Automating Limit Orders

Next time we will go over the basics of how to use automation to place appropriate limit orders to increase potential profitability and better our risk management.

Investfly Awarded with ‘Rising Star’ and ‘Great User Experience’ 2017 Award by FinancesOnline

FinancesOnline, the leading B2B and Finance Solutions and software review platform, has awarded ‘Rising Star 2017 Award’ and ‘Great User Experience 2017 Award’ to Investfly.

Rising Star 2017 User Experience 2017

Experts from the FinancesOnline team have ranked Investfly as one of the top 200 Accounting and Finance Software and provided score 8.0 and highest user satisfaction rating. The reviewers have mentioned that they used their behaviour based Customer Satisfaction Algorithm to gather reviews. It is an honour to get featured and high ranked from such a reputed site.

Investfly is unique in term of its service and quality, however the review includes some comparison with some other alternatives. FinancesOnline featured our introductions, benefits, overview and mentioned how Investfly would solve the problems of our valuable customers. They have clearly illustrated our pricing in their review.

Investfly remains committed to provide the highest level of quality and satisfaction to our valuable customer and would like to thank FinancesOnline for providing the honest review to our product, which reflect their professionalism and integrity.

If you have not tried Investfly, check out our review at and start trading with investfly

Investfly July 2017 Release Notes

Investfly has been updated with new features and improvements.

Pricing Changes
-$19.99 for Premium Users
-$49.99 for Elite Users

Data Streaming
-Real-time Data Streaming for Virtual Portfolios for Elite Users

New indicators
– Macd(6,13) and Macds(6,13,5)

Preset List of Stocks
-Nasdaq 1250 and Nasdaq 2500

Future Trade
-Trade Futures in Web and Mobile

Automation Settings
-Exclude Securities for Open Position and Close Position

Redesigned Automation Log
-Read/Unread and Download Log
-More Descriptive and Informative

How the Stock Market can change your life?

The Stock Market was first founded in 1817 at Wall Street located through New York City. Ever since then, millions have people have been part of this systematic “American Dream” system where lives have been built, crushed, or a combination of both. The Great Depression throughout the late 1920’s and early 30’s was one of the worst times to invest into the Stock Market. On the other end of the spectrum, in the mid 90’s, the Internet bubble helped spike the stock market up only for it to crash down again due to no one knowing how the Internet would help the market. There are two sides to the story when it comes to stocks. Every investor anxiously waits for the opening and closing bell that could be a potentially huge day for making or losing money on a daily basis. Automation has helped investors be more accurate and precise when it comes to deciding when, where, and how much of a stock to invest in. Computers have changed the industry of the stock market, mostly for the better. Technology has been a huge sector as well that coincides with the market and is a huge growing area. Risk, math, probabilities, and economics are key factors for sales and trading. If you take advantage and be smart with your money, the stock market could really help you not only financially, but it could be your life long job as well.

Investfly April 2017 Release

Investfly April 2017 Release Notes

Investfly has been updated with new features and improvements

New Set of Indicators
– Support and Resistance Levels
– Access indicators from previous days
– Earnings Announcements and Estimates

– Download Backtest Results

Preset List of Stocks
– Prebuilt buckets of stocks to use for automation (SP 1000, RUSSELL 1000, RUSSELL 2000, Large Cap 1250, Mid Cap 1250, Small Cap 1250, Very Large Cap 100, Large Cap 100, Mid Cap 100, Small Cap 100 and Very Small Cap 100)

Limit Order
– Support for submitting limit orders in automated strategy

Min and Max Hold Period
– Specify min hold period if you expect the price to hit stop loss too early in short-term but you want to hold on and wait for it to come back up
– Specify max hold period if you always want to close position after desired days

Apply close triggers to positions opened by Investfly only
– If you already have other assets in your brokerage account, use this option to leave them untouched

The Learning Catalytics of the Stock Market

In today’s day and age, the term “stocks” is thrown around pretty loosely. But what exactly are stocks and why do they help you earn money if you make the right moves. There are many stock trading strategies as well to help earn profits or help minimizing loses as well. Stocks are basically a part ownership in a public company that can give u a percentage of assets and earnings depending on how well the stock does. You can right a call for stocks that basically means you will sell a stock at a specific price when and if it hits that price at a specific time down the road. They are usually used against a long stock. Long stocks are stocks that you have own in your possession and short stocks generally mean stocks that you have sold. Short selling is another useful strategy in which a buyer gets stocks loaned from a broker in most cases. After a certain time period, the buyer must cover and buy the amount of stocks shares loaned and give it back to the broker. If the price gets lowered, this allows the buyer to make a profit based on the price difference of it first being loaned and being covered later. These strategies are part of the Stock Analysis and are key components to various Algorithmic trading and technical analysis as well. These trading strategies will help you make advanced moves and learn more about the expanded world of the stock market.

New Administration And Economic Outlook

With the new president of the United States being one of the most controversial elections in history, we take a look at his economic policies and scout his new ventures in what he thinks will work great wonders for the United States economy. President Donald Trump has proposed various actions he plans to take as part of his economic agenda. Key among them: he wants to reduce and simply corporate taxes, allow repatriation of overseas cash held at a lower tax rate, reduce and remove regulations, allow for energy expansion etc. President Trump is looking to push buy American goods-hire American workforce. The treat of trade war has gone up as some believe that potential application of tariffs and taxes on goods coming in may result in less demand for American goods being consumed overseas as a backlash or more expensive due to reciprocal taxes. The Stock Market could be at all time record setting numbers due to these moves.

In the past, many consumer goods have been made in a multitude of foreign markets, China being one of the largest in this sector The new administration is pushing to buy more American products and to support American companies instead of helping competing markets gain profits through our money. The idea of protectionism is a key core point of Trump’s economic discussion that he wants to carry out. He wants to set up key tariffs on products that come from exported markets outside of the U.S. This will shift the supply curve backwards on the market because the tax will affect these countries products that they want to sell into the United States. These countries are less willing to send their products into the United States that results in a higher equilibrium price. These manufacturers will have to offset their price and increase it to cover the taxes on them. As a result, fewer products will be bought because the prices are increased due to the tariffs set on by the president. This will help American products since there is now less outside competition. The net impact is hard to gauge as there are various moving parts and many factors at play.

Trump’s tax plan also calls for a tax reduction on lower/middle class citizens. These moves have by Trump are a newer and changed method compared to what we have had for the past 8 years with Obama. There is a lot of positive potential that can come with these bold changes as well for the American people but only time will tell how it all pans out. As we expected, major shifts in government policies have and will be made under the new administration. We still have a lot more in the future and this is just the start, we will see what’s yet to come.

With this in mind, Investfly can help model and shape your portfolio with multiple Trading Strategies and help with high reward concepts such as algorithmic and automated trading. With such a new and important time in American history coming through, get your edge on the market. From participating in Stock Market Games to learning just about the Stock Market basics, Investfly has a plethora of Virtual Stock Exchange Tools to help you make the right picks starting right now!

How To Trade With Relative Strength Index (RSI)

Relative Strength Index (RSI) is a technical indicator used to compare the magnitude of gains to losses. This measure was invented by J. Welles Wilder Jr. in 1978 and the default look-back setting of RSI suggested by him is 14 periods.

This indicator is basically used to determine the oversold and overbought conditions of a stock. Lowering the default 14 period setting increases the indicator’s sensitivity, which in turn, impacts the oversold and overbought conditions.

When identifying these instances, movements above 70 indicate the overbought conditions. On the other hand, movements under 30 reflect oversold conditions. When the level is 50, it represents a neutral market momentum. When analyzing the market through RSI, a horizontal movement above the 30 reference level is viewed as a bullish indicator; whereas the RSI below the 70 reference level is known as a bearish indicator.

Here are a few strategies that’ll help you trade in the market with RSI:


When you combine these two strategies, enter the market when you receive oversold or overbought signals from the RSI, backed by MACD. Exit the market when you receive an exit signal from either indicator. When the market opens, it may indicate oversold conditions, which signals buying.

Make the right decision and exit the market when you receive a signal from either of the indicators.

RSI + Relative Vigor Index (RVI)

This is a pretty straightforward and widely used strategy. When following this strategy, you should enter the market only when you receive matching signals from both the indicators. Then, hold on to the position until you get an opposite signal from either of the indicators. You can even go short if the market indicates and is bearish in nature.

RSI + Price Action Trading

When following this strategy, enter the market when you receive a signal from the RSI as well as the price action.

There are various patterns that indicate price action strategy such as candle patterns, chart patterns, trend lines, channels, etc. You can use any of these patterns and combine with RSI and can receive signals from either of these. Hold all trades until you receive a contrary signal from RSI or till you get an indication from price action that the stock move is about to end.

It is recommended that you trade with stop loss when adopting the RSI trading strategy. Looking to learn more about RSI trading? Why not practice developing stock trading strategies with RSI virtually? Investfly is a virtual stock trading platform that helps you learn all about stock market and trading strategies and prepares you to trade in the real market successfully.

What’s a Fed Rate Hike Mean?

The Federal Reserve will next meet on June 14-15 and July 26-27 and have indicated that either meeting is a “live” meeting which means they may hike rates after that day. Almost as important as whether or not they raise the Federal Reserve rate is the language concerning future hikes. After hiking rates this past December, they indicated that they sought to raise rates between 3-4 times this year. However, after a crisis of confidence in China to begin the year, the Fed and many market observers have amended their forecasts to 1-2 hikes for the remainder of 2016.

So what does this all mean for stocks?

Cheap Money Leaving the System

1-2 hikes this year would mean that the cheap money is leaving the system. The hallmark of the post-crisis economy has been easy money. The Fed wanted investors to borrow cheap money to invest in projects and companies, and some have gorged on those low rates. 2015 set a record for corporate bond issuance at over 1.04 trillion. With rates set to increase, and borrowing set to become more expensive, we could expect to see a decline in M&A activity as well as stock repurchases.

A decline in stock repurchases is a big deal. For the first quarter of 2016, retain investors have not meaningfully purchased stocks, sovereign wealth funds have been net sellers due to the low price of oil, and institutional buyers have been on the sidelines due to volatility which leaves corporate share repurchases as one of the only net buyers of stocks in the market. An event that reduces corporate share repurchases is a net negative for the stock market.

2. Fed Language

This is probably one of the more frustrating ways that a Fed rate hike can affect the markets. Depending on the language that the Fed uses in their next meeting, regardless of whether they raise rates, will have a large impact on how people view the rate market going forward. Their views on the rate market may mean that rates rise even without an actual rate hike.

If it appears that the Fed is intent on normalizing rates at a quicker pace than the market expects that would be a large negative for the stock market. In the very short term, it would a spate of M&A activity as well as a surge in corporate bond issuance as companies seek to front run higher rates.

For the past several years there has been a significant disconnect between the forward rate curve which is the market’s expectation of rates in the future and what the Federal Reserve has projected. A surprise to higher rates would therefore be unexpected by the bond market, and could lead bond market volatility– not a great environment for corporate bond issuance.

3. Strong Dollar

The United States would be the only economy in the world with a tightening monetary policy. In a world where the other large developed markets such as the EU and Japan are pursuing novel monetary policies on the leading edge of expansionary monetary policy, the United States would be alone in tightening. This could have the effect of a much stronger dollar.

Many countries especially in the developing world have debt denominated in dollars, so a stronger dollar makes their debt repayments far more expensive. Secondly, it could exacerbate the commodity downturn, since many commodities trade in relation to dollars. A continued depression in commodities would have the effect of lowering inflation both abroad and within the United States.

Most directly relevant to the stock market, a stronger dollar would harm companies that rely heavily on exports for profits. A stronger dollar means that their exports would be less competitive in the markets that they are trying to sell in, and would lead to downturn in both earnings and revenue.

Nobody knows for sure whether the Federal Reserve will hike or not this summer, but recent statements made by voting members make it seem increasingly likely that with the right data they would err on the side of a hike. There is also the possibility that the Fed would like to maintain a strongly apolitical stance and raise rates before the presidential election cycle really gets underway. Either way, a Fed hike would have a significant impact on the market, and likely result in a stock sell-off.