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H-Man,
Good to see your agreement with at least some of my previous remarks. As you say, whenever I find myself able to easily buy at the bid, I'm usually disappointed and see the price continuing downward. I was too early and will likely get stopped out very soon for a needless loss. Only time this is cool, it seems, is when I buy at the bid maybe 1/16 above a strong support level. If the price (selling) continues through much of the support level, I am out quick (hopefully at that support level with minimum loss - 1/16). And, I find using direct ISLD orders is the only way to be quick enough on these kind of trades.
So, I will sometimes buy at the bid just one little tick above strong support. However, more often than not, if I'm right and the stock is headed up, I won't get filled there and will either miss the trade altogether, or chase the trade and finally get filled several levels higher. A better approach, imho, is to buy at the ask one level above the bid, get a quick fill (rather than having to chase higher and higher) and sit back, wait for the stock to climb, or dump it quick if the sellers start hitting the bid. Again, timing is everything for a gain, but keeping the tightest stop is everything in getting out without a loss, which is more important.
Bill |
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