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Windbag1014

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Windbag1014

Re: noobie107 post# 4132

Thursday, 03/26/2015 11:08:03 AM

Thursday, March 26, 2015 11:08:03 AM

Post# of 19165

Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies.



http://www.marketwatch.com/story/why-i-stopped-using-stop-loss-orders-2013-05-09

"I like long walks, especially when they are taken by people who annoy me"

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