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Re: eyedoc post# 27483

Tuesday, 03/22/2011 9:47:20 AM

Tuesday, March 22, 2011 9:47:20 AM

Post# of 34471
You will need to be very careful with stop losses when CCME re-opens.

Trading is likely to be VERY volatile, and there is a strong possibility the price could dip down, capture stop loss orders, then rise again.

Also, once the price passes through your stop, you order becomes a market order. If you had a stop at, say, 8, and the stock opened at 6--you would get 6, maybe less. To prevent this you would use what is called a "stop limit" order--that would trigger at a stop price and be then a limit sell order at that price. The order might not execute if the price blows down through your stop and stays lower. Talk to your broker about the different types of orders.

Stops are much less useful in volatile market conditions than under "normal" circumstances.

If I could afford to buy all of them, I would not need to buy any of them and I sure wouldn't be spending time on the message boards!

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