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Strategies & Market Trends : The Dead Cat Bounce Theory

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To: Clark D. Gumeson who wrote (56)3/21/1997 1:22:00 AM
From: Rocketman   of 1836
 
A couple more things for you. Beware of after hours trading, the price changes can be extreme. I've seen several that close at for instance 8 1/4, have after hours news and open at 10 (which ends up being the days high) in the morning and fall back from there. If you have a market order in, you'll be the one paying 10 when you're thinking it should be 8 or 9. I use market orders very carefully, and tend to buy and sell on limit orders, a lot less surprises, but your orders might not get filled. Getting your order filled if you pay too much, is not as good as not having your order filled. I hate buying at the peak. Learned this lesson the hard way, losing real money (a lesson that stuck). There are some good threads that cover market makers and their ilk and many other aspects of the markets in SI too.

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