Other Things to Keep in Mind

The type of order you choose is very important when the markets aren't moving in their normal fashion. A market order will always be executed, but in fast markets you might be surprised at what price you get, which can be substantially different from the price that was quoted.

In a volatile market, the limit order - an order placed with a brokerage to buy or sell at a predetermined amount of shares, and at or better than a specified price - is your friend. Limit orders typically cost slightly more than market orders but are always a good idea to use because the price at which you will purchase or sell securities is set. On the downside, a limit order does not guarantee you an execution. (For further reading, check out The Basics Of Order Entry and Do stop or limit orders protect against gaps in a stock's price?)