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 : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Coyoti who wrote (2427)	1/24/1998 5:33:00 PM
From: Susan Saline	Respond to of 4969

Coyoti, I would like to thank you for your excellent advice. Written in an exquisite manner. Not many posts are worth printing and re-reading, but this is one of the few that are well worth the time and energy, and execution. Thanks, Sue

To: Coyoti who wrote (2427)	1/25/1998 4:04:00 AM
From: Dale Baker	Read Replies (4) \| Respond to of 4969

Coyoti, I disagree with you on NASDAQ stop-loss orders for novice investors and traders. I have been trading actively for the past year. My gains and losses have been about equal, which a beginner has to accept. It's part of the learning curve. How could I have done better? By taking paper profits before a stock turned. Unsophisticated investors are just learning which stocks are volatile and which are stable, and why. They may or may not have any acquaintance with TA. Stop-loss orders protect them from their own poor judgment by getting them out of losing trades and locking in profits when a winning position starts to go the other way and THEY JUST CAN'T BELIEVE THIS STOCK WHICH HAS DONE SO WELL AND THEY LIKE SO MUCH WON'T BOUNCE BACK REAL SOON. Most of the time, the position doesn't turn back in their favor. Of all the stop loss orders I have had triggered in the past year, I'd say 80-90% saved me further losses or locked in profits. I could give you the list of which stocks and when if anyone finds it instructive. A random sample includes QNTM, WDC, BNGO, BNGOW, DELL, GOTK, etc. Stop-loss orders MAKE you stick to your system. Yes, MM's can reach down and pluck stop-loss orders when they are playing with a stock. Overall, however, I think it's better for neophytes to go out hunting with a good flak jacket on. They also offer protection for traders who can't watch the tape all day, every day. Just one point of view. I'd be interested in Steve's views on investors who don't have a broker to advise them when to bail. Keep up the interesting thread everybody.

To: Coyoti who wrote (2427)	1/25/1998 11:15:00 AM
From: Behrooz Rezai	Read Replies (1) \| Respond to of 4969

Thank you Coyoti for your excellent advice. Please keep us informed. I posted your "Stop Losses & Risk" to Irby on the #1 Day Trader Site - The Final Frontier las night. Regards BR

To: Coyoti who wrote (2427)	1/31/1998 9:56:00 AM
From: Melissa McAuliffe	Read Replies (4) \| Respond to of 4969

Coyoti, I have a question re:<<Another point on stop-losses: they must be mental, if your trading Nasdaq; if you place a physical stop-loss, a MM will drop his price for an instant to trigger your stop, and steal your money...guaranteed.>> I was under the impression that you couldn't place "real" stops on nasdaq stocks as you can with the NYSE. I recently found out that several brokerages, e.g. Ameritrade, will accept stop losses on nasdaq stocks. The way this supposedly works is that these firms have developed computerized systems which then generate your order when your price is hit. Thus, I would think the MM's don't even see these until they are sent for execution. I was thinking of finding a firm with which I could set stops on nasdaq stocks but now I am not so sure. Would you mind clarifying this point for me. Thanks. Mellissa