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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (23882)	2/16/2001 7:00:13 PM
From: Ken W	Respond to of 29382

Example of stop loss...loses finance.yahoo.com Here is a perfect example of how your money gets stolen from you by the "efficent market" Notice how everyone owning this stock went to bed feeling all warm and fuzzy about this undervalued stock. Felt "protected" against loss by setting stop loss below where the stock had ever traded in the last 30 days. Now, look at the open compared to yesterdays close...pure theft!!! Nothing had changed about the company, the CEO did not warn, die or sell any stock, but the "market" took out some people's hard earned money for no reason other than the market is "worried". If you were fast and not afraid then you could have made some very nice money today. When the stock opened, you recongnized what was up and bought at the open and sold end of day for a better than 10% gain. I guess my point to all of the ranting is...be careful with these stop loss orders. The pro's will gun down for them and take you out. Ken

To: Ken W who wrote (23882)	2/16/2001 8:23:46 PM
From: JoeinIowa	Read Replies (1) \| Respond to of 29382

Ken, I looked at the APR 15's on MCLD and put in a low order using 13 as an entry point. Next thing I know it fills and I'm thinking man what a mistake that was. Of course once the stock recovered a little they went right back up so I figured just another example of lucky timing. It turned out to be a good week on the options front. I'm using a strategy of just buying the options for short term plays as that limits my exposure. I figured this strategy out from some of Sergios trades. This is much safer and I don't wake up one morning out a lot of money. Joe PS Did I mention that MCLD is a Cedar Rapids company?