posted
Recently I tried buying a major runner that went bullistic. But when I kept putting my order in, the bid/ask kept rising and couldn't buy when I initally wanted to. This kept happening everytime I put my order in.I finally got filled 30% later than when I wanted to. I am very mad that I lost out on 30% when I shouldn't have! Anyone have an answer how to buy when these things take off real fast? Thanks!
metal1
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when a stock is running you either have to buy at the market which can be risky or put your bid in above the offer. ie, offered at 20 put your order in to buy at 20.25 or 20.50. at least that would give you a fighting chance of getting it
wallymac
posted
I don't know if I have the Answer but will tell you what I do. If it's early enough in the run, I put my order in just above the current ask. My broker, Scottrade, fills my orders to either buy or sell at best price available, so if I can get filled lower it will.
If the stock has already had a nice run, I either wait for the dip or stay out. I've been burned too many times in the past trying to catch a runner that I would rather miss it than take a chance of losing a lot on it.
Keep in mind that stocks are a lot like trains, if you miss one another will be along shortly. Sometimes staying out makes you a lot of money.
It also is necessary to know the type of play it is. If it's strictly a Momo or Group play, I stay out unless I caught it in the very early stages. In those type of plays people generally front loaded so can sell at any point with a nice profit. Once they start selling it's tough to sell quick enough to insure your profit.
Now if it's a play that has some teeth to it and looks like a multi day runner, I will put my bid in a few tics above current ask. I usually get filled that way but also adjust my exit based on where I got in. In other words, I'm willing to accept less profit in order to protect my capital.
Just My personal style, I'm sure others have theirs. The best thing you can do is paper trade until you figure out what works for you.
Good Luck Wally
T e x
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as metal says, market orders very risky. Never do that... Agree with everything Wally mentioned...except getting filled is something you can't do papertrading. You might decide "on paper" that you *would* enter at a certain pps, but as you've seen the only way to learn this technique is by trying. As Wally alludes, the beauty of the limit order is it's that precise limit "or better"... So if you really really want in, is like any moving target...ya gotta lead 'em a little.
And here's the rest of the deal: As *soon* as you're filled, set up your sell order. Right then...You might decide to change sell order, but you wanna have your finger on the trigger...
good luck
Machiavelli
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quote:Originally posted by dough boy: Recently I tried buying a major runner that went bullistic. But when I kept putting my order in, the bid/ask kept rising and couldn't buy when I initally wanted to. This kept happening everytime I put my order in.I finally got filled 30% later than when I wanted to. I am very mad that I lost out on 30% when I shouldn't have! Anyone have an answer how to buy when these things take off real fast? Thanks!
If you do not get filled do not chase a stock... it's like chasing a hand in poker where the odds are against you making that hand... also when it's a runner do not be surprised if it crashes soon after from people taking their profits...
PCola77
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Honestly, in my limited experience chasing runners (I quickly decided it wasn't a game I wanted to play often) I found that if I put in an order well above the current bid ask, the order would sit and sit, then fill at the exact top before coming back down. I'm not a conspiracy fan kind of person, but it almost seems like if you put in an order well above the ask, they may put you to the back of the line, and so by the time your order is up, there's no support after you fill, so the price comes back down.
I may be just totally paranoid though, but if I put in an order on a runner noawadays and it doesn't fill within a minute or so, I tend to pull the order completely, and usually it does end up coming back down below where I would have initially bought.
T e x
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ya, Mach makes a good point, perhaps otherwise overlooked in the original question. I don't chase, either. Sometimes, I do change my original buy target. Also, will put in a small, first order, then "average up," but then, I hardly ever go gropes anymore, either... I'm basically talking about news plays. I used to have fun following K around and playing some of his--if nothing else, was good "quickness training," lol. Last we chatted, he said he hopes to pop in occassionally and play a few...
wallymac
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quote:Originally posted by T e x: ya, Mach makes a good point, perhaps otherwise overlooked in the original question. I don't chase, either. Sometimes, I do change my original buy target. Also, will put in a small, first order, then "average up," but then, I hardly ever go gropes anymore, either... I'm basically talking about news plays. I used to have fun following K around and playing some of his--if nothing else, was good "quickness training," lol. Last we chatted, he said he hopes to pop in occassionally and play a few...
Tex, you make a good point. Never go all in on a runner. You will always have a chance to correct your position. take a small bit to figure where it''s going. Figure it like moving in before getting married or even getting engaged.
THe best advie I see from myself and everyone else is not to chase a runner. Hey, believe me I have seen a few stocks that I liked but went to buy and they were up 50%, decided to back off and wait. Some went through the roof but the majority went up a bit and then dropped below the opening price.
IMO, trying to catch a runner once it's run is like trying to catch a falling Knife. Falling Knife being a term for a stock whose PPS is plummeting, IMO, you lose more often than ou gain.
posted