buying on the up or the down? a newbie question

Discussion in 'Trading' started by chuckybrown70, Mar 3, 2009.

  1. hello,

    if u have seen some of my other threads you might know i am new to trading.

    this question might be silly for the experienced traders, and i know we are talking about pennies, but when trading stock, if we are using a basic strategy of long an up trend and short a downtrend, and we are buying on a new higher low or shorting on a new lower high, do you just set a target price with a limit order?
    buy in the direction u are going when it seems like resistance and pay the ask? or keep lowering the limit (or raising) and make them sell on the bid at the lowest price possible?

    i know we can not perfectly time a reversal, but just curious what most of u pros do, or is there no right way?