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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: Apollo who wrote (42689)5/16/2001 12:01:46 PM
From: Andrew N. Cothran  Read Replies (1) | Respond to of 54805
 
When you put in a "buy-stop" order, the dealer knows that you want the stock only if it hits your stated price. If it hits that price, then your buy-stop order becomes active and can be filled at/above/below your stop price as the market dictates. But it must hit your stop before it becomes active.

A "buy-stop" order is an order that prevents a stock from running away from you on the upside if and when it starts its move. Meanwhile, before your stop is hit, you just sit there watching like everybody else who might want to buy but have not yet bought.



To: Apollo who wrote (42689)5/16/2001 12:56:50 PM
From: William  Read Replies (1) | Respond to of 54805
 
Re: Buy Stop
I understand how it works and the thinking behind it.
I just can't apply it. It would be like saying "OK, I'll fill the tank as soon as the price of gas jumps another 10 cents a gallon".

Wm



To: Apollo who wrote (42689)5/16/2001 7:06:11 PM
From: StockHawk  Respond to of 54805
 
Re: "buy stop orders" these are often used by people who study charts and wish to buy a stock on a breakout. In such a case you only want to invest if the stock breaks above a certain point, because that is an indication that it will run higher. If it doesn't break out, you don't want to own it. By placing the buy stop you don't have to watch the price all the time and worry that you will miss it when it starts to run.

StockHawk