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Re: fivecents post# 1531

Friday, 04/29/2005 7:23:56 PM

Friday, April 29, 2005 7:23:56 PM

Post# of 44374
fivecents

Yes for each trade someone buys & someone sells. But At any given time, traders could have orders to buy waiting to close or sell to close. If the number of orders are 100 want to buy and 75 want to sell, then there are more buy orders than sell orders.

You should consider this, when you place an order in a fast trading stock. Limit Orders are closed in order. Forget the rest of this, if you place a market order, because you step to the head of the line, but may not go in the door you expect.

Limit orders are like standing in line, your order is there, with many others. As matching orders come in, 1 is closed and you move 1 place closer to being served. This is why I say, NEVER chase a running PPs. As soon as you step out of line, your at the back of a new line, with LOTS more people trying to get in a different door, quicked just like you.

I mean how many time have you see this happen in life, at the cash register, in traffic driving? The faster line stops (doesn't close) as the one you left continues at a steady pace. Your chances of closing before the bid/ask moves past you are lower by chasing a running stock, one step at a time.

If you get scared or excited and are going to buy or sell where you didn't plan, go one step above or below the next step. Drive on the shoulder! Chances the line there is smaller and if your going to make a mistake, may as well get it made! LOL

IMO know what you are willing to pay or sell at and place the order as soon as possible, to get in the front of the line. Worst that will happen then is you see the movie later.




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