I hope you don't buy at the ask and sell at the bid. You only doing this if you enter a market order. I NEVER do this.
If the bid is the best buyer, bid 1/8 over the current bid. Now you're the best bidder. If some shmoe sells at market, you get his stock. Happens all the time.
Think of all the money I just save you.
Same works on selling. Sell 1/8 below the ask. Now you're the best seller/offerer. So market orders comes in, and you just might get it.
As well, folks with a level II machine can see the inside market, which is all the middle ground between the bid and ask you see when you get a quote. Don't forget, there are buyer and selling in there, too. More times than not, if you get agressive, you can save alot of money by splitting the difference between the bid and ask, and offer to buy or sell there. For example, if the bid is 50 x 50 1/4, bid 50 1/8 to buy or sell it. If you're really agressive, bid 50 3/16 to sell, or 50 1/16 to buy. |
