Navigating volatile markets can sometimes feel like trying to catch a falling star. But at Shyft, we’re dedicated to simplifying your investment journey through innovation and constant refinement. That’s why we’re thrilled to introduce our new limit order functionality, a powerful tool designed to help you manoeuvre the market cosmos with even greater control and precision.
Limit orders are like a safety net, ensuring you don’t overpay for shares or miss out on a great deal. But how can you best maximise it? Let’s dive into how this new feature can revolutionise your investing strategy.
 

Understanding limit orders

Market orders (the default buying method on most trading apps) are like buying a plane ticket on a last-minute booking site. 
With a limit order, you’re setting a price alert. You’re telling Shyft, “Hey, I want this stock at this price or lower”. If the price drops to your limit, your order is automatically executed. It’s like having a personal broker watching the market for you!

While market orders offer the advantage of immediate execution, limit orders provide more control over the price you pay.

Why make use of limit orders?

• Protection against price fluctuations: Limit orders help you avoid overpaying for stocks or selling them at a loss.
• Opportunity to buy at a discount: You can set a limit order for below the current market price and potentially buy the share at a bargain.
• Peace of mind: Knowing you have a limit order in place can reduce stress and allow you to focus on other potentially favourable opportunities.

How to use limit orders on Shyft

• Choose your stock: In the “Shares” tab, select the stock you want to buy or sell. Under “Order Type”, select “Limit Order”.
• Set your limit price: Determine your target share quantity and price to execute your trade.
• Choose its duration: Set for how long your limit orders hold.
• Place your order: Make sure you’re topped up on forex before tapping “Place Order”, then await our confirmation email as soon as the order is processed.

Tips for using limit orders effectively

Like all investing tools, limit orders are not a panacea for risk. It’s important to stay informed and keep a close eye on market trends and fluctuations so you can use this feature wisely.

• Research the stock: Understand the company’s fundamentals and market trends before placing a limit order.
• Be realistic: Set a limit order price that is realistic and based on the current market conditions. Don’t expect to snatch 100 AAPL shares for $10 a pop anytime soon!
• Monitor your order: Keep an eye on market prices and adjust your limit order if necessary. Remember, limit orders may never be filled if the price is never met. There’s no guarantee your desired price will be reached, so be prepared to adjust your strategy if needed.
• Don’t get picked off: Again, limit orders require active monitoring to mitigate risks.

Conclusion

Limit orders can be a valuable tool for any investor, novice or seasoned. By understanding how it works and using it with an informed lens, you can improve your chances of making good gains. Start incorporating Shyft’s new limit orders feature into your investment strategy today.
 

The views and opinions shared are for informational purposes only. They are not intended to serve as investment advice and do not represent the views or opinions of Standard Bank. This information should be used as a starting point for generating investment ideas, and should not be relied upon as the sole basis for making investment decisions. The Standard Bank of South Africa Limited will not be responsible for the results of any investment decisions made based on the views provided.