[webninja]

Day trading is hazardous to your health and your wealth and more-so with the increase in HFTs. But the buy and hold for long-term strategy works very well. Use limit orders and you won't be paying any "hidden" costs.

For example, Lets say you put in a Market Order for 1 share of GOOG. Currently the price per share is about $900. It could fill immediately at $900, or it could fill immediately at $930 with that $30 premium. If instead, you place a Limit Order for 1 share of GOOG for $900.02, you will only buy 1 share of GOOG for $900.02 or less which effectively cuts out any "hidden" costs. Limit orders are almost always better.

Fun fact: All Robinhood market orders are actually placed as limit orders 5% above the market price. This is to limit investor risk.

[jameskegel]

Can you substantiate the last paragraph somehow with a source on this statement?

[webninja]

Yes, Robinhood Order Types: https://support.robinhood.com/hc/en-us/articles/208650386-Or...

Edit: Now only market buy orders are converted into limit orders. Market sell orders remain as market sell orders. They must have changed their policy in this last year.