Time is the most valuable resource that many investors lack in the fast-paced world of today. The stock market’s short trading hours may appear to be a barrier to serious investing due to work schedules, family responsibilities, and everyday life demands. Veteran investor Ritchey Marbury challenges that idea in Do It Yourself Investing for Busy People: Trade Anytime. Individual investors can trade whenever it suits them, even in the middle of the night, without compromising control or discipline, according to Chapter 10, “Trade Anytime You Wish.”
Letting Go of the Clock
Marbury stresses that trading is not limited to the starting bell, even though the New York Stock Exchange and other U.S. markets may have defined daytime hours. You can enter a transaction at any time, be it late at night, during a lunch break, or on a calm weekend, thanks to contemporary brokerage systems. The important thing is to realize that even though you can place an order at any time, it won’t be executed until the market is open. Marbury sees this wait as a benefit rather than a drawback, giving you more time to consider the trade, examine market signs, and validate your plan before it launches.
Limit Order’s Power
The limit order, a technique that allows you to control the price you pay or get, is essential to Marbury’s strategy. You can place an order after hours knowing that you won’t pay more or sell for less than you planned if you select a minimum price for a sale or a maximum price for a purchase.
For instance, you may choose to purchase a stock, but only if the price is $50 or less. In the evening, you can place that order and continue with your day. The trade is automatically executed if the stock meets or surpasses your set price when the market opens. Otherwise, depending on the kind of instruction you select, the order either stays pending or expires.
The Good ‘Til Cancelled vs. Day Orders
Marbury describes two important limit order timing choices:
- Day orders are only good for the following trading session. The order just expires if the market never hits your limit price that day.
- Until the trade is filled or you cancel it, good ’til cancelled (GTC) orders remain in effect. Unfilled GTC orders automatically expire after a maximum period, usually 60 or 90 days, specified by many brokers.
- GTC orders might be very useful for investors with hectic schedules. Without continuous observation, you can set a target price and let the market come to you over the course of days or even weeks.
Using Stops to Protect Your Profits
Ordering is just half the work. Marbury emphasizes how crucial it is to safeguard your profits after a trade is completed. The good ’til canceled stop order, also known as a trailing stop, is his favorite instrument since it automatically sells a stock if its price falls by a predetermined amount or percentage from its peak after acquisition.
As the stock price increases, a trailing stop order swings higher, locking in profits while allowing the trade to expand. A 5% trailing stop, for example, will follow the stock upward, but the order will trigger a sale if the price drops more than 5% from its peak. As a result of decades of experience, Marbury believes that this approach enables you to “set it and forget it.” To avoid having to monitor prices all day, he usually places a 5% trailing stop on all stock trades.
When Trading Is Right for You
The ability to trade whenever you choose is among the most liberating insights in Chapter 10. Marbury frequently uses limit orders to establish distinct price boundaries when placing trades over the weekend or after work. He can leave the screen knowing that his downside is under control because his directives include protective stops.
Because of this flexibility, investment becomes a tolerable habit rather than a stressful, time-sensitive task. You can submit your orders, go back to your usual activities, and study charts and indications whenever it’s convenient for you, like in the evening after the kids have gone to bed. When circumstances align with your criteria, the market will carry out your carefully thought-out trades.
A Lifetime of Evidence
Because Marbury’s advice is based on over 60 years of personal trading experience, it has credibility. He oversaw his company’s retirement plan for more than 30 years without a losing year, and he is a professional civil engineer by profession. He is currently in his late eighties and still makes a good living from trading by employing the same straightforward, methodical techniques outlined in his book.
Instead than following trending advice or depending on pricey subscription services, Marbury promotes a self-directed method that anybody can master. He has experimented with intricate option techniques and advanced trading signals, but he always goes back to the simple tools limit orders, GTC instructions, and trailing stops that help him control risk and make sense of his decisions.
Important Lessons for Regular Investors
Decades of practical experience are condensed into manageable measures in Chapter 10 that busy people can implement right away:
- Place Orders Anytime: Trade anytime you have time, including on the weekends and at night. Your planning is not constrained by the clock, but execution will take place during market hours.
- Use Limit Orders: Always state the lowest amount you are willing to take (for a sale) or the highest amount you are willing to pay (for a purchase).
- Select the Appropriate Duration: Choose if you want your order to be active until it is filled or canceled (GTC) or just for the following trading session (Day Order).
- Protect Your Gains: To prevent losses and lock in winnings, place a stop or trailing stop order as soon as a transaction executes.
- Simplify Your Routine: You can stop continuously monitoring the market by putting protective orders in place. To track progress, check in once a day, or even less frequently.
Putting Money Down on Your Own Terms
Do It Yourself Investing for Busy People makes it quite evident that you don’t have to spend your entire day staring at a trading screen in order to make money? No matter how busy your calendar is, you can trade the markets with confidence and effectiveness if you understand order types and adopt a disciplined approach.
The techniques used by Ritchey Marbury are intended for everyday use. Chapter 10 provides a road map for trading sensibly and productively on your terms, regardless of whether you’re a parent balancing family obligations, a professional with a busy career, or just someone who appreciates leisure time. As Marbury reminds us, freedom is a boon, particularly when it comes to securing your financial future.
