SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: E. Davies who wrote (1986)6/8/1999 10:49:00 PM
From: William W. Dwyer, Jr.  Read Replies (2) of 2120
 
Eric,

Whenever you find it easy to buy a stock at the bid price, you gotta wonder why. Who would sell to you at the bid if the stock is going up? This assumes you're trying to go long a stock you believe is headed up.

The only time being able to buy at the bid is a good thing is on the very rare occasion that you have perfect timing instincts and you manage to hit a downtrending stock at the exact instant right before it bottoms and starts to reverse. You buy from the last person willing to sell, then the stock heads north. Not gonna happen very often.

Frankly, the best trades occur when the stock bounces off resistance and is just beginning a move up. But you'll be buying at the ask. If you've picked the right stock at the right time, you'll be quite happy (and lucky) to even get it then. Ever notice on a true momentum stock that there are usually trades going off "above" the ask? Those are the traders who really want in. It a situation such as that, it's very unlikely you'll get filled at the bid. In fact, spending any time trying to buy at the bid will often cause you to miss out on the trade altogether, or the delay will cause you to buy at the top and wished you had missed out.

My opinion, of course.

Bill
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News