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Strategies & Market Trends : DAYTRADING Fundamentals

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To: E. Davies who wrote (8228)5/4/2000 11:01:00 PM
From: Dan Clark  Read Replies (1) of 18137
 
Eric,

One additional point...

Many times when I'm looking at a fast moving stock that stalls out, I start thinking, "Is this the time to get out?" Because I can scale out with no penalty (within 5 minutes), I'm more likely to do so. In reviewing my records, many times that first gut instinct is correct - I've found that many times I close out the rest of my position within a minute or two.

If I had to pay for each commission in a scale-out, I'd be less likely to scale out. This means that that I'd be more likely to hold the position too long.

Works for me anyway.

Regards,

Dan.
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