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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: SliderOnTheBlack who wrote (39602)3/11/1999 11:02:00 AM
From: Andrew Brockway  Read Replies (1) of 95453
 
Slider or Big Dog,

Question about setting tight stops; How tight do you set them? For example, E*Trade requires a stop limit to be 1/4 below the current bid. Depending on the value (share price) of the stock, that 1/4 spread can cause all sorts of problems. Some people suggest not setting them too tight and suggest setting them at a price that would reflect true downward movement and not the type of movement that comes with a normal day's trading range. Could one of you give us an example of how you're using stop limits? Use one of your real-life examples, or tell us how you would play a stock such as ESV, which is currently trading around 12 1/4.

Thanks,

Andrew
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