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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: TREND1 who wrote (20439)10/3/2001 11:52:39 AM
From: James F. Hopkins  Read Replies (1) of 52237
 
Larry ; I've always had reservations about a stop
loss, particulary in volatile markets that I can't
keep my eye on. I found a work around that is a type
of stop loss, say if I'm bullish and the puts are cheap
enoung. Leg into a stock as momentum is moving it up,
then buy an in the money put that limits just what
my downside can be, ( longer term is better )
If I'm wrong on the stock bet my loss is limited
but at least they can't reach down and just hit the
stop loss to take me out.
I'm of the conviction that market makers track
the amount of stop loss orders on the books
and when they reach a large enough order
at some price they will mark the bid/ask
in such a way to move the issue to get thoes
orders. Piss on getting stopped out by the
pros.
Jim
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