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

To: E. Davies who wrote (8228)	5/4/2000 11:01:00 PM
From: Dan Clark	Read Replies (1) \| Respond to of 18137

Eric, One additional point... Many times when I'm looking at a fast moving stock that stalls out, I start thinking, "Is this the time to get out?" Because I can scale out with no penalty (within 5 minutes), I'm more likely to do so. In reviewing my records, many times that first gut instinct is correct - I've found that many times I close out the rest of my position within a minute or two. If I had to pay for each commission in a scale-out, I'd be less likely to scale out. This means that that I'd be more likely to hold the position too long. Works for me anyway. Regards, Dan.

To: E. Davies who wrote (8228)	5/4/2000 11:44:00 PM
From: Jon Tara	Respond to of 18137

I don't understand the appeal of the 5-minute thing at all. You can do the same thing with any broker that allows you to modify your order (Preferred does, I assume others as well) and with no 5-minute limit. So, if I place an order to sell 1000 shares of a stock at 50, and it starts dropping, I can modify my order to 49 7/8, even after, say, 500 shares have sold. I can even temporarly "deactivate" my order, by, say raising the limit to 55, and then drop it back down into marketable range when I want to continue selling. Heck, in this manner, I can even cajole NITE into buying or selling more than the lousey 100 shares they usually are willing to do. :) All for one commission. No 5-minute limit. Take your time. I've previously described how to use this technique for shorting, by first placing an order at a high limit price, to insure availability, and then modifying the limit when you are ready to let the trade go through. (There IS one difference - by modifying a limit price, you can't control the number of shares bought/sold at a time. So, you couldn't, say, sell 200 shares every minute. You'd have to place an order to sell, say, 1000, and it might get filled all at once. But, then again, I assume that in most cases that would be what you wanted anyway. Nevertheless, there are times when you'd prefer to space-out a buy or sell. For example, if you are uncertain of a top, you might want to space-out a sale to allow yourself some additional gain if the stock continues to move up.)