Videolocity International Inc (VCTY)

[dragon52]

So there are theories on when to buy and sell?

I always thought the basic was to buy at the bid... because that is what it means. You are bidding to buy the stock at that price. And you sell at the Ask, as in, that is what you are ASKING to sell your stock at.

No riddle... just plain economics. But some use pretzel logic and that is: Buy High and Sell Low.

Now the theory is this... if you buy at the bid and lets say there are more than one bid, it will start stacking up. Now the more that stack up means that there are more buyers. Now if MM's do not have inventory at those levels they will bump up the bid pricing until someone sells giving them inventory to fill those orders.

On the other hand, if you buy at the ASK you are giving the MM's the opportunity to short sell the stock since they make money between the differences between bid and ask. So if the ASK is inflated above the BID, the more they make.

Why do you think at every open in the morning, the pricing goes up and up and up and all of a sudden it starts to walk back down? Because the MM's have inflated the ASK and people are gullible enough to buy it thinking that the price is going up and they get caught holding "the bag". All along those who bought at the bid will start selling as people buy at the ask and make that 2%-3% gain... called day traders. They don't care because they are moving enough money to make $100 - $1000's each day and that is what counts. That is their job or livelihood and how they make a living. Some are very good at it; while there are others who go out of business in a very short time because they know not of fundementals of trading.

So... my advice to ALL is to start thinking like you WANT to MAKE MONEY. Start buying at the bid. It will teach you patience, but most of all, you will be helping your stock move higher since the bid side will be heavy, the MM's will have to move the bid up. And when the bid side reaches the ASK, they move the ASK up. You very seldom see the Bid higher than the ASK but it happens some time... and people wonder why.

So let us drop the myth about bid whackers are no good... they are especially good if they are buying and that is on any stock.