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To: still learning who wrote (3238)	7/20/1999 5:24:00 PM
From: michael r potter	Read Replies (2) \| Respond to of 4467

Statistically, if limits are used, usually one gets the fill and saves 1/8 or 1/4 [splitting the bid and ask]. But... to often, the stock takes off and one is left unfilled. Or the stock goes down then one gets filled. It is a subtle way over the long term of ending up with losers and not getting winners. An ex. A few years I had a position in a stock at around $3. It went up to $7 1/4 X $7 3/4. My rationale was I did not really need anymore, but if I could pick it up at $7 1/2 limit it would be OK. Left the order in for a couple days, the b/a didn't budge, then it took off. No big deal, didn't care that much anyway. Ended up around $60 in a year. 400 shares, my savings if filled would have been $100. Assuming I would not have sold at the top, but $50, lost opportunity was over $16,000. So most of the time, one picks it up at the limit. It only takes an occasional miss on a winner to blow all the savings and then some. Works the same on selling. If it is worth selling, worrying about $1 or $2 or fractions is long term expensive, as it is that sale that is missed that gets away on the downside that can do real damage. It is appropriate if a stock is say $50 and one fundamentally thinks it should be bought no more than $40. That might be OK, [debatable]. It is better these days [not using limits], as NASDAQ spreads are a lot better. Sometimes on NYSE, they will fill better than the Bid/Ask with a market order. Mike