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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading: -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (518)	2/5/1998 8:26:00 AM
From: Arthur Tang	Read Replies (2) \| Respond to of 769

Don't do limit orders. It is a one sided commitment. It tips your hand to all the market makers who visits Island system. They can take you out or leave you twisting in the wind. Especially if your sell limit is too high, they will stop short of your order. If your sell order is a stop loss orders, which means it is 10% to 30% lower than market price; they will surely take you out. If your buy order is too low, and they fill the order; the price will pull back some more. It just means there is no other business around. If your buy limit is too high, they will leave you alone. No advantage in any case to let people know what you have. Sell at market 5 minute before closing, when the price gets near your target, is my advice. Island system limit book is free, but you need Sun Java to read it. The buy and sell side gives you an idea of the resistance and support levels. Some times very small (volume) orders became big hurdles in price movements. Also, it shows most of the trades each day is done by market orders.