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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: newtrade_dev who wrote (42949)	2/1/2001 12:25:59 AM
From: bbgold	Read Replies (1) \| Respond to of 52051

Evening Wei, I have not been on the computer otherwise I would have responded sooner. It does not look like anyone else seems to be helping so I will let you know what I know, little that it is. I am not familiar with Datek but usually when you place a trade you need to select whether you are going to be buying or selling a stock as an entry. Look at the options listed under that entry. Example: Buy or Sell or Sell Short. You would select Sell as the action you would like to establish. You should then have to enter the Type of Sell order. Example: Market, Limit, Stop, Stop Limit. Select Stop or Stop Limit and enter the Bid price at which you would set as your Stop for a decline in your stocks value. The difference between a Stop and a Stop Limit is that a Stop order becomes a Market order once your Bid Stop price has been hit. A Stop Limit is similar to a Limit order in that once your Bid Stop price has been hit the order becomes a Sell at Limit order. Example: You own a stock at $5 and the Bid is at $4.75 and the Ask is $5. You do not want to take a loss of more than 20% so you would set your Stop at $4 or 20% below where you purchased the stock. Whenever the Bid reaches $4 your order will be Placed. The price that you may actually recieve may be lower depending on the severity of the stock prices decline. If you set a Stop Limit order at $4 then when the Bid reaches $4 the order becomes a Sell at $4 order and they will only sell the stock if they can get $4 or better for the stock. With electronic trading as fast as it is I am more comfortable with just a Stop since the Bid price you set as a Limit may be passed by rather quickly. If you feel that the stocks price has peaked and you just want to make sure that you lock in your gain then you will want to move the Stop price Up as your stocks Bid price increases. How much of a loss you want to factor in from the current Bid price is up to you. Remember that you are taking a Loss from the current Bid price. If the stocks price swings are erratic and you are comfortable with that then make sure you leave enough room below the current Bid to account for the price swings. Please! Call your broker and have them explain it to you also. I am sure that they will be very happy to help you. If you click on the Help icon that Datek has on their site I am sure that you can look up an explanation of Stops also. Make sure to call Datek anyways just to be sure you understand the Stops correctly. If used correctly they can become an asset by protecting Your Assets in case of a severe price decline in your stock. One thing to remember is that the Stop orders may not carry over into afterhours or premarket so if the stock has a major decline during one of these periods then your order will not be executed until the market opens. Please! Ask Datek about it! Remember, It is up to you to cover Your Ass-ets! Good Luck Wei! bbgold :^)