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To: Chris who wrote (22511)3/28/2000 2:50:00 AM
From: MartinF  Read Replies (1) | Respond to of 42787
 
Hi Chris,

Trader J's articles archive is here:

tigerinvestor.com

The link you gave is for Robert Rak, our resident chartist.



To: Chris who wrote (22511)3/28/2000 12:03:00 PM
From: jef saunders  Read Replies (2) | Respond to of 42787
 
hey Chris, thinking again of selling GE. my DMTHF is
dipping and i've found buying those dips to be money
in the bank. i sold some DMTHF to buy GE, that worked.
GE went up. great. rebuy DMTHF is easy money. what
do you think?

besides, this thread is having some market topping discussions. there's a chance i could catch GE again
lower as well.

thx,
jeffS



To: Chris who wrote (22511)3/28/2000 8:48:00 PM
From: Robert Graham  Read Replies (2) | Respond to of 42787
 
I was burnt for a couple hundred dollars doing something stupid like not using limit orders in choppy market conditions. Damn price moves 2 points past my stop before I was filled. Instead of hitting the emergency eject, I waited. I know when price moves down that quickly, it can whipsaw in the opposite direction, and it did. Since I did not want my stop loss hit with same same consequences, I covered with a market order. But price moved up quickly enough to hit my stop loss anyway before I had a chance to cancel. Then I had the same problem.

Lessons:

1. Always use a limit order for entry to limit slippage in a situation like this.

2. When price fills me away from my intended entry, immediately eject to abort the trade due to the screwed up reward to risk, and then cancel stop loss.

3. If stupid enough to wait, allow stop loss to be hit and take my chances. Chances are it will hesitate allowing me to be filled before spiking the other direction which does not happen often.

Spikes in the e-mini are for the most part not that difficult to discern from genuine moves that may whipsaw. The spike cleared the stops. So the second move in my direction actually followed through *after* I was whipsawed out. In choppy market conditions, I find it is best not trade. If a very good setup occurs that looks like it can follow through, definitely use stop limit orders. Better yet, if price spikes first taking out the stops and allows for another entry, this trade will much more likely follow through.

Bob Graham