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Contra Guys: The role of ‘stink bids’ in the chase for higher returns Add to ...

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One goal of the stock investment game is that old mantra, “buy low and sell high.” Even better, all other things being equal, is to buy lower and sell higher. Naturally that increases returns. “Stink bids” can help make that happen.

A stink bid is simply entering an offer so far below the current price that under most circumstances it probably will not be filled. But sometimes that order dangling in cyberspace gets taken when the stock price dips or dives.

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