Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: rocklobster who wrote (27724)	1/15/2002 6:09:31 PM
From: TechTrader42	Respond to of 52237

You need to take this up with your brokerage's grievance department, and if that doesn't work, take it to arbitration. And you need to use stop limit orders.

To: rocklobster who wrote (27724)	1/15/2002 6:54:47 PM
From: TheStockStalker	Respond to of 52237

A Stop order would have been the right thing to have during the multiple surprise rate cuts of last year. If one would have use a stop limit instead during those events, the losses would have been much larger than 40 points. Those events did not pull back after the spike and a stop order is still the best insurance to have. I understand that one would expect to be able to not incur such slippage with a stop but there are is one thing I do not understand. I do not believe that a 40 point loss should be able to cut an account in half. To much leverage period. The reason one should factor such a loss in their planning is because of possible and somewhat common system failures on the Globex. I have seen the Globex system go down a few times and on each of those times the regular stock markets and open outcry futures markets just keep on trading. When this happens, one does not even know and cannot find out if their orders have been executed or even put in an order if it was not already in. Wherever the market is when the system is back up is where you can trade again. For this one very reason alone, aside from "Death Spikes", one should not be in a trade where 40 points cuts them in half. The fact that a 40 point move cut you by 50% is a sign that you are using leverage to try to get 25%-50% gains through common intraday moves of the NQ. That is too much leverage. The only place where one could ever get the fills and without the risk of slippage is in the old bucket shops from the days of Livermore. The Q's had a pretty big move at that point too and they are a very liquid instrument and so did many individual stocks.