Sand, I think it more important to limit your downside if your wrong than spend all sorts of time trying to get the "right" price. If half of the time you are unable to get a better price, then all of your time is wasted. No?
So I will look at near-term trends and when it looks like the right time, I'll just jump in with a market order or a limit order above the ask, to be certain that I walk away with the stock. FAR worse than getting a fill an eighth higher than I expected . . . is missing out altogether. So I place more priority on my time than I do on eighths. Now keep in mind that this is for swing and position trading. Of course if you are daytrading, eighths are everything.
As for chasing, it is relative to the momentum, float, story, market trend and volatility. Each stock is different, IMO. There are times when it is extremely risky or even silly. . .and other times when buying the breakout is warranted. And this is why learning to be a good trader on both sides of the ball is CRITICAL to becoming a great trader. You must be able to recognize a great short-opportunity, if you are going to know when to sell your long swing positions. Otherwise, you turn from a swing trader to a bagholder. . . an avoidable mistake.
Rande Is |
