As a retail investor that puts a certain monthly amount into equity, I was wondering which is the best way to proceed when purchasing stocks. By best I mean the one that would allow me to purchase the stock at a lower price. Assigning some minutes every month to the process is not a problem.
I'm used to placing limit orders between the ask/bid prices, and the order executes almost instantly. I was thinking if it could be possible to take advantage of the volatility of the stock price to set a permanent limit order with a slightly lower target price, expecting that its volatility drives it there during the trading day (or the subsequent days). Thus, purchasing the stock at a lower price.
Having the historical daily price range for a specific stock, it would be plausible to assess its volatility and set the target share price accordingly. Is my thinking flawed? Am I overlooking something? Is there other more advisable course of action for purchasing stocks?
I just want a fire-and-forget policy regarding monthly stock purchases, but I thought it could be improved, albeit slightly. Even if it would mean a small improvement, everything adds up in the long run.
How to decide on limits when purchasing/selling stocks?
The chosen answer(@Michael Pryor) helps me deal with the guilt of not purchasing immediately. Although I wouldn't mind the order being executed a month later (as long as I'm not missing dividends), I'm well aware that as time goes by the share price would move further from the targeted price, making the execution increasingly unlikely.
Choosing the limit when making a limit order?
This one comes closer to the mark, but seems inconclusive. @DumbCoder recommends crunching numbers oneself (my approach here), but seems that the focus drifts into stock value assessment, which isn't my interest (I'm not picking stocks).