Traders Under 30

[moocow111]

Lets say the average difference between B x A is 5% in most pennies. So buy making most purchases on the Bid you save 5%. Then I sell most of my stock on the Ask so I make an additional 5%. So in my 2 entry and exit trades I'm almost guarenteed 10% savings, which is like beating the market.

Sit Bid When: The market is slow, after a dip, during a dip, or when you are trying to quietly accumulate shares.

Sell the Bid When: A stock is crashing and you need to get out now

Hit the Ask: When you know that shares are hard to come by, you are in a fast moving market and need shares before a run.

Sell the Ask: Almost in every occassion sell the ask.