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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: XOsDaWAY2GO who wrote (390)	2/5/1998 9:16:00 PM
From: Ms. X	Respond to of 34818

Hi Barbara, I know you sent this to Tom but I thought I would cut in. Buying a stock with a market order or a limit order depends on where the stock is trading and what its indicators look like. For instance. If you have a stock that has been on a big run up and has surpassed all resistance, you would want to set a limit order at a price you determine gives you a good risk reward. If a stock has broken resistance and all systems are go (relative strength, momentums, sector and market bullish percent) you can buy at market knowing you risk reward is good at that level. As an example now. Dell has run up considerable as has MSFT. They both are trading at all time highs. I would not enter market order on these. Not a good risk reward as neither have pulled back. I would rather enter a limit order at a nice pullback price. Stocks pullback no matter how good they are. It is tempting to chase a stock but remember, if you miss one opportunity there are 11,000 more out there to find. All the best, Jan