Tricks for bidding on new stock

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If a stock is going to become available on some date X, what are best practices to bid:
– can bid at midnight or you have to keep refreshing your webpage starting 9:30am on that date until the stock appears?
– will limit buy be better than a straight buy, or is your limit order likely not to make it through if price increases quickly above the limit you set?
– does the total number of available shares affect how many you should try to buy, what if my order was for half of the available shares?
– etc whatever you think would be useful to know

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Asked on January 26, 2021 11:13 am
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Private answer

Hi there,

Let's see if i can answer your questions

- Typically before the market opens, you can check out Level 2 quotes - that will give you an idea on where the stock will open. Of note, not every one has access to lEvel 2 quotes. The NEO exchange offers them for free on their website. On the day of trading, brokers should have the stock available to trade that morning - what time? I'm not sure, it will depend on the broker. RBC usually has it up by 830am
- I always limit buy new issues - typically because i go in with a price point in mind and i don't go chasing a stock.
- I will never buy a full position at open - I'll usually look at buying half or a third of a position and see how the stock settles.

It is actually rare that I will buy a position right at open, I like to see how it settles in the first hour but that is my personal preference.

Hope that helps.

Mat

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Posted by Mathieu Litalien
Answered on January 26, 2021 12:14 pm
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Private answer

Hi there,

Let's see if i can answer your questions

- Typically before the market opens, you can check out Level 2 quotes - that will give you an idea on where the stock will open. Of note, not every one has access to lEvel 2 quotes. The NEO exchange offers them for free on their website. On the day of trading, brokers should have the stock available to trade that morning - what time? I'm not sure, it will depend on the broker. RBC usually has it up by 830am
- I always limit buy new issues - typically because i go in with a price point in mind and i don't go chasing a stock.
- I will never buy a full position at open - I'll usually look at buying half or a third of a position and see how the stock settles.

It is actually rare that I will buy a position right at open, I like to see how it settles in the first hour but that is my personal preference.

Hope that helps.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on January 26, 2021 12:14 pm
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