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Replies to post #2275 on lowtrade

Replies to #2275 on lowtrade

Sanswired

02/27/06 2:55 PM

#2276 RE: multivalue #2275

Careful with putting any stop loss on any position. MM's can walk a price down and take your position out, then back up it goes... Stop losses are good in bigger stocks, not in heavily manipulated ones. IMO.

lowtrade

02/27/06 8:35 PM

#2280 RE: multivalue #2275

multivalue

The short answer is don't use stop loss orders! But that does not solve your problem. Questions need to be answered. Is the position large? How long was the investment made for? Can the trip be put off? Do you really believe GTE will succeed long, event with a short term set back?

Timing is the problem. GTE is at it's biggest turning point of the past 3 years. One can expect major profits or losses in the next several weeks.

If the position is not to big and you are a long, just hold and find a way to check once a day.

If it is big and you are short stop frequently at computer cafés. Maybe locate and plot them on your trip. So you can check stock mid morning, late lunch hour and mid afternoon.

If the position is real large and your short, don't go on the trip. The lost gain or increased loss may match the cost of the trip. Or find an electronic mobile connection, so you can monitor in you car. Laptop & DSL wireless contract may be cost effective at that point.

If you position is average size and a swing, try a trailing stop. If your broker offers them. That type order is stored in the brokers computer, until trigger point, then released into the open market. So M&Ms won't see it just sitting in the open market order book to go steal, until the last minute.

You could also look into round trip orders at your broker, if your swinging and want to stop loses & pick up gains also. They work the same as trailing stops. You choose the sell loss, sell profit targets, then the action to take when target is reached. Like open sell with market, limit, or stop order. These type of orders are stored in your brokers computer. Their system monitors you requirements and nothing reaches the open market until the brokers computer system releases it, using you spec's.

Down side to either of these is you really have on way to correct any error brokers computer system may make. Slim but possible.

Hope these ideas help.