Silicon Investor (SI) -- The First Internet Community

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 : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (4497)	9/29/1999 9:01:00 PM
From: Dave O.	Read Replies (1) \| Respond to of 18137

< you are trading on your terms, and you are in control. For me, it helps reduce the emotional aspects and stress of trading. > This is so true. I think once a stock has peaked and starts to decline, even if just a bit, that many traders start to think of the "lost" profit by not selling at the top. And often emotions and/or greed can creep in where a trader says "I'll wait for it to hit "x" again (the high they missed out on). And often, it never moves back up to that old high. Then one finds themselves chasing the bid down, maybe getting declined by a MM, or seeing it drop another level and getting frustrated before finally being able to sell. Dave

To: Eric P who wrote (4497)	9/30/1999 12:24:00 AM
From: Mark Davis	Read Replies (3) \| Respond to of 18137

Interesting post and there is merit in the approach. I do have a real problem with one aspect of your method. Posting a ' resting' or unmanaged bid or offer leaves you open to any number of 'sitting duck' issues. Granted, we can't always manage our trades live and in person, but predetermining a buy or sell, to either open or close a position gives up an edge. Let's say you want to sell a stock. So you put it up 2 points above the offer and hope it gets taken out. Well, if the stock gets that high, it may well have good reason to go much higher, so you are giving up that move, and providing someone with 'cheap' stock. Better to watch the flow and determine the real momentum in the stock. Perfect example would be Amazon today. Someone with as resting sell stop 3 or 4 points above the market just gave their stock away. Had they been managing the trade, it would have been clear that the stock was a rocket and could easily keeep going. Again, this assumes the time and energy to watch the market.