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Re: frdmlover post# 35740

Thursday, 09/23/2010 1:09:12 PM

Thursday, September 23, 2010 1:09:12 PM

Post# of 72136
YES, they definitely see your Stop Loss Orders and use them to gain inventory of shares. They DO NOT see "Trailing Stop Orders"...see if your broker has that available, I know E-trade does.

In a Trailing Stop E-trades system calculates each day's trading and compares that to your TSO. You set your TSO as a $ or % value behind the share price. As the share price increases your TSO follows it. Then, if the share price reverses and then hits your TSO it will trigger an automatic Market Sell order in the system. At that time and only at that time does the Market see your order.

So, if you are going to use Stops then my advice is to use TSO's. However, your TSO would have been triggered today also, more than likely. So, you may want to use Mental Stops if you know you are in a volatile stock.