Breaking News: CAPS Limit Orders Unleashed!
Okay, TSIF scooped me wih this blog post on the Limit Order functionality that we released tonight.
Nuts and Bolts:
You can read all about this new feature on our Help page (scroll down to the Start and Close Limit Orders Section). For your convenience, here are the specific Help documents:
* What Are Limit Orders?
* Can I Change My Limit Orders?
* When Are My Limit Orders Active?
* What Price Will My Pick Start/Close At?
* Do I Need To Enter Limit Orders For My Picks?
Simply put, CAPS Limit Orders enable you to Open or Close a CAPS Pick based on a future price target. Set a price target to open an Outperform or Underperform pick when a company trades at your price target, Outperform start limits open at a price lower than the one entered, and Underperform start limits open at a price higher than the one you enter.
With Close Limits, you can set an Upper and Lower Close Limit, which will end your CAPS pick if the stock trades above your upper limit or below your lower limit.
1. You can create limit orders for potential picks that you would like to make if a company reaches your price target by using the Advanced Pick Utility on your My CAPS page. Look for the "Now with Limit Orders" promo on this tool.
Advanced Pick Utilility on your My CAPS page:
Creating Limit Orders with the Advanced Pick Utility:
2, Click on the Limiit Orders tab on your My CAPS page Scorecard to set close limits on your existing picks. Click on the "Start Limits" link to see any pending limit orders that you've created for potential new picks.
Screen Shot of Limit Orders Tab
Q: Great, but, ahem, doesn't this just exacerbate the problem with people "banking accuracy"?
A: Well, we are currently only supporting price limits not score limits. So, you'd have to be accurate in your call about both the price movement for a stock and the S&P in order to use limits as part of a CAPS banking accuracy strategy. That's not an easy task, and as most people actual fail miserably when attempting to bank accuracy, this would likely increase the failure rate even more.
And we feel that the value of providing people with a means to set price targets and trigger CAPS open and close pick actions has many more benefits to our community intelligence than downside. For example, Limit Orders will help make it easier for you to maintain your scorecard, ensuring that the information that is coming into CAPS is more timely, relevant and reflective of your outlook for any particular company.
Kick the tires on Limit Orders and let us know what you think. And, as always, thanks for helping us to make CAPS smarter!