Replies to post #2838 on World Surveillance Group Inc (fka WSGI)

[mide]

Willsimon...I apologize. I had no intent to imply stop loss points were "stupid".

I do emphatically state this. In a small cap stock, with the control of the major trading of shares in the hands of the market makers, and until the company shows steady feet as a real entity worthy of major house institutional support and corresponding public recommendations to support retail over market maker activity on balance...setting lock stop loss physical orders against your shares is really really not wise.

You will get clocked. I warned about today's possibility yesterday in a post. And it happenned. I have seen it countless of times in small cap stocks I have owned....and have paid the piper painfully for doing it myself.

Trust an old bird...set a mental stop...wait a beat...then execute if you must.

Those that had a stop at 2.90-3.00 today were lucky in the down draft if they were not clocked out at 2.52.

That is a serious haircut. Only reason she got that low is one. A ton of stop losses triggered a landslide cascade...and once that starts, there is noting you can do. The very good news is that she didn't close down there at 2.52. That would have been a distribution signal as the MM's didn't want it either. The Hammer bounce said they accumulated the sales, in spades.

Had none of them had been there (stop losses), I believe we would have finished back into the 3.15 + channel.

regards,

M

[doc80ca]

Mide can clarify for himself but I believe his intentions were geared towards this specfic circumstance and is relative to penny stocks.

The application of stop losses in my mind apply more to well established stocks where a 25% intraday drop is not common and would trigger a stop loss to protect your investment. In the circumstances GTE is in a stop loss does not make sense as the MM's can play the signal with great effeciency as the pps has greater ease of movement.

[SEBASS]

Stop-loss order is permission to be defrauded.

"implying that setting stop losses is stupid is simply irresponsible and unwarranted. Setting a stop loss is basic tading 101. Protecting an investment is the smart and right thing to do"

By creating stop-loss order you are giving away your shares to Market Makers at their discretion and their price. I am not going to write about MMs work since it's been mentioned here multiple times and you are wrong my friend about protecting your investment. In theory it make look like that to you but in reality MMs the sharks of the water will take your shares like taking candy from a baby. If you disagree find some post here about how Market Maker work and if you do not understand that then too bad.

[easy rider]

willsimon,
a good friend of mine did not take any advise to purchase gtel between .10 to .22 cents. after he found out that the company he works for was invited to the summit he purchased gtel with a considerable investment in the .30 cent range.today he called me to ask what happened to gtel?he was not aware of the name change or the move to amex.in the beginning of the conversation i did not let on about the one for fifteen reverse split and let him think that i am now a multi millionaire,before he had a stroke i let him know it was a 1 for 15 . however, he did "protect" his investment with a stop loss order and now he has "0" shares of gte and a loss of funds.I agree with other posters about placing mental stop losses or if you so choose a stop limit order in a very stable stock,but for volatile stock issues why would anyone want to play that game.take a look at any of the tanker stocks over the last 4-6 months and see what would have happened to your investment with stop loss orders in place.all of us have an opportunity to learn from each other on both boards and i applaude all who are willing to post their thoughts even though the opinions of others who respond to a post might be misunderstood. i do believe that we are all here to learn and support each other as gte moves to higher ground.thank you to all who support this board with your time and effort.

easy rider