Chase a Stock

Chase a Stock

To place limit orders for a stock that is increasing in price. One places the limit orders at successively higher prices in order to take advantage of the stock's capital appreciation when it is rising while not exposing oneself to the possibility that it will not rise to a higher price. For example, one may place limit orders at $5.50, $5.70, and $5.90. This means that if the stock goes to $5.60 and then falls to $5, the stock chaser will only be lose the amount invested in the first tier of purchases. On the other hand, if the stock rises to $8, one receives the capital appreciation on all three tiers of purchases. See also: Average Up.

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chase a stock

To attempt to buy a stock that is rising in price by placing orders at increasingly higher prices.