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Do I consider buying now at at 58 dollars a share or is that what you call chaseing a stock?

Sob story. I bought 200 shares of AMZN at 17, (now would be $5.60.) It was the first time I had used my Charles Schwab online account. I was unfamiliar with limit buys. The night before I went on vacation, I put unlikely high limit sell orders in for four of my stocks, just to see how they would show up in my account. I had only owned AMZN for two months and usually hold stocks forever. AMZN had been bouncing around by 50 cents everyday, never going over 18. So I put a safe sell order in at 25! While I was on vacation, the market went crazy and all four stocks sold. Three of them were fine, it was the biggest week of the year. But Amazon, violins please, sold. My profit was about $900. If I hadn't been playing around with limit orders, those shares would now be worth over $184,000.

Due to the volatility in the market, I totally believe in limit orders. But if you really want a stock, just eat it and put a limit buy in for a more likely price. A few dollars on a stock you that you really believe in, for the long term, is not going to make a huge difference.

I sometimes place limit buy orders. I wait until the second day of an IPO and hope for the dip. Sometimes I just try to go a few bucks lower than the previous day close. I missed EBAY at 100, RNWK at 18, COST at 12, and YHOO last year. In most cases, I only missed it by $2.00. Then I chase, and end up buying them finally at double the price. I have matured.

On a stock that I already own and want to accumulate more of, I put in very low limit buys and just wait to see if they hit. Like SBUX at 44 or AOL at 140 or MSFT at 140 or TWX at 50. These are prices that I feel comfortable with. That's because I have owned them for a long time, I have enough shares of them to not feel left out, and if they dip again, I would be happy to pick up more.

Good luck, watch the button.
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