posted
having problems buying stocks without chasing.....
for example this morning i want to try matto's pick of snio. bid is .016 and ask is .018. if i put in a buy order at .018 and it opens right away moving up i end up chasing it and paying way more than i think i should.
any suggestions on what to put as a buy price when market opens knowing that the pps will go up immediately.
obviously new to penny world
any help would be appreciated
Posts: 15 | From: boston | Registered: Jan 2006
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posted
IMHO...that is going to have a different answer from every trader... I typically will not "chase" a stock more than 20%...at open...I will usually wait to see what it will do...looking at the volume and if there are sell offs or buys...and decide from there...there are ALMOST always dips..or "shakes" that will bring it down and then jump in...each stock is different..depending on the news, the share structure...and what not...Hope this helps...and GLTY!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards! Posts: 8890 | Registered: Jan 2006
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for instance, what would you of done in my previous example at opening. it turns out that the ask reached .021 right before opening. would you of bought at .021 or possible higher to ensure sale went thru?
-------------------- Jason D Posts: 15 | From: boston | Registered: Jan 2006
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posted
I wasn't following that stock..What was the previous close at? If it was 20% below the open...then no I wouldn't have bought...I would have waited...for a dip..or to see how the stock was moving...looks like right now at 1:40...it is at where it was at the open...sometimes with these pennies..it takes a day or 2 for the news to actually hit and begin to move...
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards! Posts: 8890 | Registered: Jan 2006
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posted
The 20% thing sounds like a pretty good rule to me.
My personal rule is to never buy within the first hour. (Sometimes I break my rules but that is the rule I made)
It is based on what 10of13 posted earlier. There are almost always dips in the road that will let you get ing without having to take part in the shoving match at open.
If something pops and doesn't give a dip...Well then, the chance is it was running the afternoon before and you have probably already missed all the good entry points to get on the train. Let it go and look for the next one. Sucks...but there is always something else right around the corner.
BF
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
Like Bigfoot said--there is always something else right around the corner.
Never panic buy. It's better to let something get away if you come in after the takeoff. More stocks run every day than you can put money on so don't worry if you're not in on a big runner. Let it go. Keep a look out for the next one.
-------------------- Me Trade Pretty One Day. Posts: 815 | From: NYC | Registered: May 2006
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posted
A caveat: "party daze" from earlier this year are over, at least for the time being. Many who were hitting lucky runs not so long ago will be challenged to hold on to their gains in the weeks ahead. Some will expose their new capital to very "iffy" propositions in hopes of "making something happen." Likely what will happen is sudden erosion of new capital, having been mistaken as "money." On the one hand Bigfoot makes a very valid point re "something else around the corner." However, the wait in-between is now longer--the greedy, the unscrupulous, the lazy will increasingly drift together for group gropes, 30-minute P-n-Ds and assorted other get-rich-quick schemes. The old chestnut, "Cash is a position, too" is well remembered during these times--as is the admonition to have your exit clearly in mind BEFORE establishing a position. If this seems a rambling rant n' rave, ask yourself: In such conditions, are MMs making as much as they'd like? Deduce accordingly...
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