When you make a new recommendation to buy, you provide 2nd and 3rd buy points to average down on the position. If I place a limit order that’s good until cancelled, it automatically cancels in 60 days. If a limit order cancels, do you recommend re-entering the limit order at the suggested 2nd and 3rd buy points?
Every broker has different times that a GTC order lasts on their books. But yes, the traditional time was 60 days. Yep, averaging down levels always stay the same. They never change. So if your limit orders expire, yes, I’d suggest putting them back in.
Limit orders take precedence over intraday market orders because they were waiting in line ahead of time. Additionally, it takes out the hesitation or second-guessing that people do around averaging down levels. It also causes one to stick with the system. And, they don’t even have to watch it or react to it. It also enables one to take advantage of quick spikes down, that many people wouldn’t be able to see or react to in time.
I’m with TD Ameritrade. When setting the GTC date, I put it as far forward as the system will let me. I try to keep that in mind and before the order expires simply edit the order moving the date forward. Very simple.