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Jeff,
Okay, great, now here's my point. If you try to buy at the bid (indeed an honorable thing to strive for) and you miss it, then it takes you a while to maybe cancel your order, re-enter another order, and hope to catch the "ask" before it upticks.
In other words, while trying to save 1/16 or 1/8 and buy on the bid, you take the chance of missing it altogether and buying, not at the bid, but at the ask, one or even two levels higher.....not a pleasant prospect, especially if the stock only goes up one more level. You would be stuck and then find yourself struggling to get out without too much of a loss.
On the other hand, if you trying buying on the bid and get it, there is the very real possibility that the stock is not finished dropping yet, and you'll end up with a position in a stock that is still headed down. You'll get screwed on this one, too.
It seems to me that one needs to wait to see buying in the stock, lots of buying, heavy buying (which is, by definition, gonna be at the ask) before entering the position. Fastest way to get in it buying at the ask. And, if the stock is worth getting into at all ('cause it's going up), isn't it worth getting into as quickly as possible.
Now there is always the notion of buying in-between the bid and ask. But I believe the safest play is buying on the ask, quickly, when the stock is under obvious upward momentum.
Well, looks like I have beat this one to death tonight. Sorry <g>. Wonder how many times you and I have sold stock to each other.
Bill
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