Limit orders: is there a limit to how many at one time?

Question

Let's say I have $30,000 in capital to invest at the start of the trading day. I see three or four stocks I like, but I really only want to end up with one of them at my desired price. I place a limit order for each stock. All orders would amount to near $30,000 EACH if filled.

Will an online broker like Ameritrade allow this and simply not fill the other orders, if one of my limit orders hit the limit price I set? How does this work? Can I sit and wait on 5 stocks with limit orders, whilst only wanting to get one?

Answer 1

Some firm will allow "contigent" orders, but not in this case.

You can enter a single order with it being contigent on another but not on four others.   You may have to "pair" them, but this is not a wise move.

You playing with fire, and is not good trading/investing practice.  There is always the possibility of having all of them execute, and then you would have spent your total investment capital.

One thing a professional investor/trader has as major rule - you never invest 100% of your investing/trading capital invested at one time.

You should split your investing capital, and only invest a defined amount into each position.  So if you have 30,000 in may invest/trade 4,000 into 5 positions. leaving a cushion in your capital, or try 2,000 into 10 positions.   You can select the amount, but don't spend 100% at once.