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Strategies & Market Trends : The Market Taught Me That......

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To: Michael who wrote (113)11/11/1997 3:20:00 PM
From: Michael  Read Replies (1) of 151
 
One danger with stops I should mention is that if there is really bad news, the stock usually opens way down and you will be stopped out. Often in the afternoon (or even right after the open), the stock steadies. That is one big risk with stops. To have a stop at 10 and find out you sold at 7 is pretty bad. Often there are so many people trying to sell at the open that you get a lot less than you can an hour or two later.
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