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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: ftian who wrote (76345)	6/8/2002 1:46:10 PM
From: Joseph Beltran	Respond to of 99280

after watching the new schwab commercial, i want to change my screen name to: "letsputsomelipstickonthatpig"

To: ftian who wrote (76345)	6/8/2002 2:32:43 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 99280

There are only very rare occasions when you may want to use market orders, the MM's will invariably take you to the cleaner. (g). Zeev

To: ftian who wrote (76345)	6/8/2002 6:33:54 PM
From: shoreco	Respond to of 99280

ftian, Here's an example of what can happen when you use market orders during a fast moving market... A couple of years ago I tried to get out of a stock that went into a freefall, after failing to get my limit order filled multiple times, I placed a market order... That order got hung up in cyber space, I tried canceling it and all I would get was message saying "trying to cancel".. I watched as the stock went down 2-3 pts and still I got no fill. I called my broker and got a message saying "we are experiencing heavy call volume, please be patient and we'll answer your call in the order that it was received. After about 10 minutes of being on hold and the stock now down another 1-2 pts, I finally received a conformation that my order was cancelled. Instead of selling it for a 5 buck loss, I decided to hold out for a bounce. I finally sold that stock for 10 bucks less than I paid for it. That stock was CIEN and in the Summer of 2000 they warned of an earnings miss before the market opened. That was an overnight 10k loss and all I was looking for was a "little earnings pop". Now, here is what I do now... If I absolutely, positively have to get out/in, I'll place a limit order above/below market by a nickel/dime and that "INSURES" me at least my limit price. Of course if it's that bad you could go a quarter higher/lower, but since we went to decimal pricing a nickel usually works just fine. (You can use pennies also) We live and learn... EOM Shoreco PS Of course if I didn't try and cancel that market order I don't know what the outcome would've been, and I'm sure I wouldn't of lost 10 bucks, but if I had just adjusted my original limit order I would've been out with a minimal loss. That my friend was a capitulation of capitulations... PSS We haven't had that type of bottle neck action since last September, where phone lines get jammed and orders get hung up, but that is the type of action that marks tradable bottoms...