Baird, I have been practicing the switch strategy you discussed today since early last year. Over about 2 dozen switches I did since, I have all except one occasion when it didn't work out, it was on a FLC to PDS switch. In fact, I even made it a point to switch among the same class, like deep versus deep (e.g. between RIG and DO), offshore (FLC vs NE is a good one, FLC versus ESV and RDC are also not bad), MDCO vs CDG, PTEN vs UTI (I love this one).
Today I think you've got opportunity to switch between FLC and ESV and get that $1 temporary premium.
Steve S - After I switched to Datek, I have been able to buy at bid and sell at ask in HEAVILY TRADED NASDAQ issues. The spread sometimes expanded temporarily but I don't always noticed it. MM will eat FGII buyer/seller heart out by temporarily increasing the spread if one places a market order. Never, never place a market order. Even if one wants to buy at ask, place a limit order at the ask price. Over the years I've also been able to sell at the high of the day, especially if I place a MARKET order to sell at the open. This kind of reinforce the thinking that buying at the open is a NO NO. I pay $9.99 for Datek and $12 for Waterhouse. However, DATEK does not have allow stop order for non-Nasdaq stocks. Those who use full service broker to execute trade are definitely at a disadvantage here.
The only time I use a market order is on day like yesterday when a panic selling turned into a panic buying. This is where a buy stop comes in very useful. |
