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THE MARKET WHISPERER 28 5

of $10 for every 1000 shares. The disadvantage of adding liquidity arises
from my needing to wait until a buyer comes along who is willing to sell
the shares at my BID price.

From my experience, if you want to exit, it is almost always preferable to
remove liquidity and pay the surplus commission, since in most cases the

price will just “take off” and you could be left with even greater damage.

Summary

Order Routing
Working directly with the ECN, adding or removing liquidity, is usually

the most appropriate mode of operation for advanced traders operating
with large quantities of shares. It is reasonable to assume that as you
start out, you have sufficient other details to pay attention to, therefore I
recommend once again that you choose the automatic routing provided by
your broker. If you have no such option, choose the ARCAL default.

Trade Orders

You can’t see the forest for the trees? The bottom line is very simple.
This is the best way to get ahead: your trading platform should always be
set to the limit order, since you will be using it 90% of the time. In special
cases, you will use the market order, and generally, only after you have
bought a stock or are planning a complicated entry, will you use the stop
order. As you accrue experience, you will find that it’s not as scary as it
sounds.