If I know a stock I want to buy, what is the best way to split up initial buy order so I don't go right in.

Question

I have seen people use certain buy in strategies where they split up there buy order at certain price targets rather than one order where they fill their complete size at once.

Answer 1

I have used the rule of thirds. Roughly 33% at a time. But, it depends on your overall strategy, how much you invest because the more you buy, the more you pay commission, and how much you know about technical analysis.

Answer 2

If you have 100,000 to buy then buy 50% now...then space the rest out in 5% intervals..upwards..set a stop/loss at 10% of a loss.....If you are still in a hole then find another stock