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Strategies & Market Trends : Technical Analysis - Beginners

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To: Robert Graham who wrote (7147)11/30/1997 10:05:00 PM
From: Richard Estes   of 12039
 
Floor traders? They are carrying out the orders of their house and customers, not private trading. Futures trading better fits your examples.

The market maker knows where stops are located. I picture many times before a good move up, the MM will "take out" stops to gain inventory for trip up. But everything is a guess with 1000s of answers. An indivdual might sell at any level because he wants down payment for a car. a fund might do it to wrap up a 150% move they started, they may rid themselves of 100,000 shares in 2000 share increments over 2 weeks. We just don't know, we guess.

Stop losses under support. I think if a stock turns against you by 10%, get out. You might change this to 15% for lower priced stocks.
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