The Final Frontier - Online Remote Trading Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Final Frontier - Online Remote Trading

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Estes who wrote (2336)	1/12/1998 9:23:00 AM
From: TFF	Read Replies (1) of 12617

Richard: The point is that you do not have the option to excercise a risk management strategy which is line with the returns you are trying to achieve. Let's assume you typically have a stop loss limit order in @ - 5%. If you hold a 1000 share of INTC long overnight, and it gaps down 10 bucks, you do not have the option to excercise stop lose order any where close to -5%. You are now stuck with a HUGE paper lose and a decision to: 1) Cut your loses and run. 2) WAIT and WISH for a rebound during the day at which point you may limit your lose. 3) WAIT and WISH for a rebound in the next few days at which point you may limit your lose. ALL 3 options leave the Day Trader with an unwelcomed state of mind. He/She is shaken and hopefully not stirred. Most likely unable to trade properly until at best the trade has been covered, at worst for a few days or longer. Assume the best, and the stock gaps up. The Day Trader is seduced to hold overnight more frequently and become comfortable with the added risk. IMHO the Day Trader becomes a LOSER in either case.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next