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Strategies & Market Trends : SOES Trading -- Ignore unavailable to you. Want to Upgrade?

To: Hawk who wrote (1108)	11/13/1997 12:33:00 AM
From: Mark Davis	Respond to of 1618

Sorry to hear about your bad day. This is exactly the kind of thing I've been ranting about in this thread. There is a huge amount of HIDDEN SLIPPAGE in SOES trading. When it hits the fan there is NO LIQUIDITY in the market. You just found that out the hard way. What happens when they HALT a stock on you and open it 5 points away from your buy price? Does the house buy you lunch the next day? Look, SOES operators are charging top dollar to provide you with a high risk way to make money. They make out no matter how bad you get screwed by the market. The most important thing and trader can do for their own sanity, is control their risk. That means jumping ship quickly when things are turning against them (yes, you will get shaken out on many occasions this way) and keeping COSTS DOWN. In my opinion, SOES rooms should not be paid more than $15 per trade or 1.5 cents a share. If you're paying $25, it's too much. Instinet rips you off for another $15 for a 1000 share lot. Add all these costs in and it's a huge burden. I'm not sure how you got banged for over 2 points per stock today, unless you rode them down a point first, then could not sell into the downward momentum that developed. I've seen this many times and it's not pretty. Good luck whatever you decide to do.