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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (4506)	9/30/1999 8:02:00 AM
From: Matthew L. Jones	Respond to of 18137

<<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.>> Not to mention the fact that ECN's work on a cue basis, so the first shares sold will be the first shares offered at that level. And as you said, while managing the trade you can always cancel your sell order which will have an effect of strengthening the look of the stock to those using level 2 which as you stated will work in your favor (although using ECN's generally your order is not visible until it gets to your level unless someone actually looks at the ECN book). I agree with using that type of exit strategy-- allowing the trade to come to you. Of course it does requires better T/A ahead of time to predict the proper levels, sometimes placing offers 1/16 below "evens", knowing what you're doing and of course less speed on the trigger. <g> That is a real plus for old guys like me. Matt