BUSINESSWEEK ONLINE : MAY 22, 2000 ISSUE
COVER STORY Best Bets for Better Trading DON'T MOO Don't place ''market orders on opening.'' These are overnight orders to buy or sell at the price prevailing when the market opens. They're unpredictable and often out of line with later prices. USE LIMIT ORDERS In volatile markets, setting your own price can prevent nasty surprises. The SEC is stepping up enforcement to ensure that dealers honor limit orders. WATCH YOUR TRADES Real-time quotes can give you a strong sense of what prices are before and after your order is filled. Streaming quotes are better. LEAN ON YOUR BROKER Brokers have a legal duty to get the best execution for customers. You can demand an audit trail to see prices around your trade. Monitor limit orders with extra care--if the market moves through your price, you'll miss out. SWITCH BROKERS Look for one that routes limit orders to ECNs (electronic communications networks), where buyers and sellers are matched automatically with no dealer spread. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS Commentary: Trading Online: It's a Jungle Out There TABLE: Best Bets for Better Trading INTERACT E-Mail to Business Week Online

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