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Trigger Orders

There are many ways to buy stocks. You can use options (selling puts) to buy your stock, you can buy out right, or you can use trigger orders (OTO) to buy shares of your desired stock.

I wrote many times about using OTO in the past as when accumulating my dividend portfolio I wanted to buy shares at as cheap price as possible so I used this strategy of trigger orders.

What trigger orders or OTO (one triggers another) do? It allows you to track the stock price down and you only buy when the stock price reverses and goes higher again.
 

It is an excellent tool to squeeze a few more pennies (and sometimes dollars) and lower your cost basis. Today, I use primarily options to buy my shares but when a stock is not optionable, or selling options is not feasible, I still use this OTO order to buy stocks cheaper. When prices are falling, this is an excellent way to catch relative bottom of the fall (of course, you will never be able to catch the bottom itself, but with this strategy, you can get pretty close to it).
 

I created my own spreadsheet to help me calculate the desired price for a trigger order. On this page, you can access the spreadsheet on your own and use it for your own benefit:
 

Stock calcs
(Click to enter the spreadsheet)
 

Here are a few links I wrote about this strategy and how to use it. Please read it to learn:
 





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