How to buy certain stocks correctly, do not use market orders!

Many of you have seen my posts on Antares Pharma. (AIS) I own close to 85,000 shares of it now.. Some of you might be wondering why after you buy, the price might go down.. Well, it is good traders who understand how to take a pps down like this.. They both cover their shorts and make long buys by spreading the shares across the bid and the ask… Say you want to buy 5000 shares of AIS.. Don’t buy it using a market order, but set a limit order for 2500 on the bid, 2500 on the ask.. Why? Top traders look at level 2 ECN shares.. If they see less shares on the bid, they will bid a penny less, or bid in between where the largest amount of shares are.. only a krap load of buying from the ask will get them to raise their bids.. Since AIS is in accumulation mode, not having huge volume yet, they know how to manipulate the price action to get their price without causing the price to run up and attract attention…. You should always buy and sell this way with stocks like this…Bank of America, Microsoft, and other huge volume stocks, you can use Market orders, otherwise, use limit orders!

AIS in the future is going to be a big winner, and the smart investors in Bio Pharma know it! AIS is a stock/company that you will have to be patient with. Barring some unforeseen world event, the pps will like be triple or higher where it is from now in one year.. Don’t expect to make fast money on this in the short term.. Most people who attempt to invest in these lower cap stocks have unreasonable expectations for the short term..

Invest on fundamentals, Management, Market share, Market share potential, products, know your company!! Be prepared to answer questions from other potential investors in a stock you own.. Do the research, do not simply buy something because myself, or anyone else says to buy something!! “Stock tips” are generally for suckers and people who are just too lazy to do their own research. I point this stock out because I believe over time, it will be a big winner.. If you think stocks cannot go from this price range to much higher, see Jazz Pharma, Denderon, Ariad, Mela and a host of others. Be careful to invest any money in companies with shady financing, all spec, bad management, too big a cash burn, debt, over spec, hype, etc… Fundamentals of a company is key along with that company’s market and future market share… Also, make sure any company you invest in has enough volume, liquidity in shares being traded to get and out of… I have seen many good companies stagnate in share price because people just were not interested in them for several reasons..

I was in a company a few year ago named Chyron. I made my family trust about 300k on it.. I got out for good when I saw the volume was drying up.. This was caused by bad company relations with investors, making a reverse split for no reason at all except to get listed on The NASDAQ… It is a good company that makes money, but a share price of around 2 dollars trading less than 10,000 shares a day!!

AIS average volume is over 800,000 shares a day. It is getting attention from larger institutional investors… Whatever companies you decide to invest in, just make sure you really know that company, and again, be very precise in your research!! Good luck to all!!

Scott
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