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

To: que seria who wrote (76366)	6/8/2002 4:31:35 PM
From: augieboo	Read Replies (1) \| Respond to of 99280

Que Seria, Zeev was talking about market PURCHASE ORDERS, not stops. Zeev tells everybody to use stops, all the time, no matter what. He probably uses some mental stops himself, (that's my conjecture), but the he is Zeev, and we are not. <ggg>

To: que seria who wrote (76366)	6/8/2002 5:46:13 PM
From: lee kramer	Respond to of 99280

The MNM's on the Nadsaq and the Specialists on the NYSE know where the stops are bunched and often go "gunning for the stops." That's what they do. One strategy to outwit them, the enemy, is to "scale" your stops. Example: A stock which you own runs down to 25 three or four times and fails to follow through on the downside. The stops are gonna be bunched just under 25; perhaps 24.99, 24.97, 24.95...if you have 1,000 shares you might stop 300 at 24.90; another 300 at 24.69, the final 400 at 24.49. This is just an example...there is a point at which you must decide, before entering, that the trade has "gone wrong." Sure, if you get stopped out of your entire position the loss will be somewhat larger than you might prefer...but you'll be out and not take a real "hit." Additionally, you might avoid losing your entire position when the MM's go gunning for the stops and grab all your shares. Just a thought.