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Re: sw74 post# 891

Saturday, 06/04/2005 4:15:04 PM

Saturday, June 04, 2005 4:15:04 PM

Post# of 33129
sw74

1. Any TA indicator which uses price in the formular will be effected by news & MMs PPs plays. That is because the price movement as a result of the news effects the price!

2. No stop loss normally can only be placed with stocks over $5. But It really depends on who you use as a broker. Most all brokers have their own rules about trading limits. The only SEC rules I know of is " you can't short penny stocks and you must be listed as a daytrader to make more than 4 trades in the same stock in one week, also shorting and day trading requires a margin account." I don't recommend anyone trading on margin, but you can open a margin account, wthout using the margin, so you can become a daytrader with out using credit!

2a. Just another thing to keep in mind, stop loss orders, stop orders and market orders are not wize orders to place on the OTC:BB market. Too many times market makers will close those orders, no matter where the PPs is at. It's illegal, but happen in error and on purpose very often. If you ever have this happen to you, you should contact your broker ASAP! Very hard to nail down, and in too many cases people lose money.
Always use limit orders on the OTC:BB, it safer. If you want to gamble on the OTC:BB, you have to sit at the table! I use round trip orders on exchange traded stock. Helps me keep my fingers out of my original trading plan!!