Kris,
1. I have also watched Irby trade stocks like Yahoo, RMBS, etc. He is very good at it. I also occasionally trade in stocks like this. I can't speak for Irby, but I use a different set of rules. I know going in that if the trade turns against me I may lose $1 or more. If the trade goes my way I will likely make more than $1. Trying to play something like yahoo with a 1/8 or 1/4 stop loss is not only impossible, it would just result in your getting whipsawed out of almost any trade in the stock. Still, you MUST have some maximum level of loss you will accept....and you must begin the exit process well before the falling stock reaches that level. My advice, NEVER NEVER NEVER trade a stock like yahoo without a high tolerance for pain and a clearly defined exit strategy that is based upon the fact that you may get out 1/2 a point lower (or worse) than where you enter the sell order. Also, you really have to pay close attention to what way is best. For example, don't try to soes out if there are only two or three market makers within 1/2 a point of the best bid when there are thousands of shares to buy on isld.
As for market orders, I often use them as an exit (but never to enter a trade). Frankly, I have nothing to lose with a market sell....if I want out a a given level I don't want to stay in the trade at an even worse level. When you want out YOU WANT OUT.
2. I believe that stocks can have 200, 500, or 1000 share soes limits. Most of the stocks I trade are 1000 share soes stocks.
3. Thanks, I think I will join. |
