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: Mark Davis who wrote (4502)	9/30/1999 1:01:00 AM
From: keith massey	Respond to of 18137

This just had to be posted... intelligentspeculator.com I could have used this tradestation a couple of times <ggg> My question...where are the multi-monitors and the fridge? Best Regards KEITH

To: Mark Davis who wrote (4502)	9/30/1999 3:19:00 AM
From: Tai Jin	Respond to of 18137

You're not giving the stock away if it hits your target. You've achieved your objective, so there's nothing wrong with that. Of course, there could be improvement in setting the objective, but I think it's important to have an objective. One thing it does, as stops do, is to take out the emotions and some of the second guessing in executing the exit trade. Of course, if you can watch the stock constantly then it might be better to let it run until it stops running. I think it's a matter of style and neither is the right or wrong technique. ...tai

To: Mark Davis who wrote (4502)	9/30/1999 6:55:00 AM
From: Eric P	Read Replies (1) \| Respond to of 18137

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. I still monitor and manage the order continuously, and the order can be cancelled at any time as the price approaches my limit order. The main advantage in actually placing your order in advance is that it prevents the stock from looking weaker near your intended selling point by the appearance of a ~1000 share sell order at or near the inside ask. Sometimes, just the late appearance of a sell order such as this will slow down or even reverse the momentum in a stock. Granted, this is obviously not true with a huge stock that trades 10M shares/day, but it can be a factor for a stock that trades ~200k to 1M shares/day. In other words, I agree that a trader should actively manage the trade, but I prefer to post an order in advance and then monitor whether the order should be adjusted higher. If I do adjust the sell order higher, this has the effect of making the stock look even stronger, which can actually help my position. It's all just part of the psychological game of trading. -Eric