here abengoma...a past post from "lowtrade", tells WHY bidbuying hurts pps....
Posted by: lowtrade
In reply to: None Date:11/1/2007 12:46:10 PM
Post #of 112210
OK everyone that bought at the bid today raise you hands. LOL
Good buy right?
Wrong, here's why.
Because if you load up the bid the PPs will go down, not up. And you bought because you wanted the PPs to continue up, right??
So if you bought 100k .0005 below the ask you SAVED $50. But may have cost yourself $100 in continuation!! Now if you placed your order above the ask it would close at the best price, some where between the bid/ask.
This morning I placed a buy .0003 above the ask the bid was .022 ask .0225, it closed at .0221 the best price my broker could get. The stock continued up. The ask raised to .0228.
Buy order .0003 above the ask & I got it .0001 above the bid. That's a good buy! I didn't increase on any pull down, but still got it for the best price my broker could get it for me. Just .0001 above the bid. Could have close at .0225 ask, but rarely at the above ask price your buy was at. Because your broker did he's job and got it as cheap as possible.
Now what do you think would have happened if we all tryed to buy at .021? Think the PPs would continue up? When everyone wants to SAVE under $50 bucks!!
Think about what your doing, when you want to enter. Do you want to SAVE a little and cost possible continuation ?
Or do you want to buy into a run? One way you help stop the run, the other you help it continue.
So saving $10 bucks could cost you $20! Because once a run stalls & starts going after your lower bid orders, Retail mindset changes!! Now all expect to get it lower then lower then lower.
Your hurting your self, people! For a couple bucks SAVED!!
Food for thought! Support the ask! or stop the run! LOL
Checkpoint buy the ask.
