Gino If I'm right you are a Kiwi so a great day for both our...

Gino If I'm right you are a Kiwi so a great day for both our Nations. Great services this morning.

So for a long while now I have been encouraging everyone to never place buy orders in the queue and here's why. Remember that I have learnt from experience that this practice is incredibly costly.

Lets use the recent trading of IMU as a classic example. When the SP was trading in the .105 - .13 cent range for so long, how many folks placed orders at 10 cents or just below thinking that they might pick up a bargain? Doesn't look that good now does it.
By placing an order in the queue, are you really thinking that you are picking the bottom of that cycle? Are you thinking that the big seller will finish distributing right at that level? Are you really thinking that you can outsmart the market and the SP is going to reverse as soon as your order is hit? How disheartening is it to see your order get filled and then watch the SP continue to fall 5%.....10%.....15%. (And then you hate the stock and blame management for everything! ) Haha
Another reason to not get involved in this is that say you place an order for your 200k units at 4 pips below the SP and so does another 4-5 punters. The big seller sees an extra mill or so as candy where they can clear some of their order at a higher average price. If those orders weren't placed, the big seller would need to accept what's on offer therefore accepting wiping lines lower to complete their order. This means you can buy lower when it reverses. Can you relate this to recent trading of IMU?
And the most important reason to never place an order is that you are buying a falling stock. Think about that. aren't we here to buy stocks that are going up not down?

I'm sure those that had their orders filled at the 10 cent region wished they'd had their time all over again as they can now buy so many more shares for the same capital outlay. All they've done is assisted the big seller and trapped themselves. I say that with respect as I've done it many times myself in my journey. But we need to learn from those mistakes.

If you're wanting to trade a bit, possibly the biggest lesson to grasp hold of tightly is to protect your capital whatever that amount is. By placing orders in the buy queue is just reckless with that capital IMO.

Hope I've explained my opinion clearly.

Cheers