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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (2440)	1/25/1998 10:53:00 PM
From: Dale Baker	Respond to of 4969

For on-line trading, I use mostly stop-limit orders only. I risk the stock skipping past my limit when I am not looking, but I lock in certainty 95% of the time that the stock will only be sold at a price I set. I usually watch a stock trade for a period before buying. If it jumps around wildly, I go for the limit order to avoid the biggest danger, which in your example is the stock prints at 10 and the MM drops the bid to 9 1/2 for just an instant so the stop order still has a "clean" fill - which is actually a ripoff. That wouldn't apply to someone whose broker is working the stop for them.

To: steve goldman who wrote (2440)	1/26/1998 12:50:00 AM
From: Morpher	Read Replies (2) \| Respond to of 4969

Interesting speculation on Datek but I'm afraid you're incorrect. Datek doesn't make markets, they don't sell Nasdaq order flow, and they say they will have NYSE stops in a "near future" (whatever that means).

To: steve goldman who wrote (2440)	1/26/1998 1:01:00 AM
From: Carl H. Gotsch	Read Replies (1) \| Respond to of 4969

Steve, No, I do not have it backwards. Datek permits stop orders on NASDAQ stocks, in which they specialize, and not on NYSE stocks. As you suggest, it does seem strange, especially when I looked at some other firms that have been recommended for their speed of execution. For example, AB Wately (sp) does exactly what you were saying, i.e., they do not permit the implementation of NASDAQ stop orders but do permit stop orders on AMEX and NYSE stocks. I moved a portion of my trading account to Datek from e-Schwab in part because of the speed of execution, portfolio updating, and the fact that they leave the connection "open" so that orders can be placed without having to login repeatedly. But an even more important reason is that they ALWAYS have stocks available for shorting. I don't know how they manage that, but I simply got tired of having Schwab reply that they were unable to borrow the stock. (Incidentally, could you explain what Datek must be doing in order to be able to provide borrowed stock--virtually without fail?) I understand what you are saying in your comments about pros and cons of on-line brokers vs. full service brokers such as Yamner. In my case, given the size of the lots I trade, I don't think it would be worth the additional hassle. But you have raised a number of questions on the thread about internet brokers and, as a result, I will pay closer attention to my transactions than I have in the past. Thanks for an excellent thread. Regards, Carl