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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Czechsinthemail who wrote (15523)	3/19/1998 3:16:00 PM
From: Chuzzlewit	Respond to of 95453

Baird, that's a standard technique in bond trading. It's basically arbitrage. The problem when applied to stocks of different companies is that they're not fungible. So it ultimately comes down to a question of subjective valuation, since, as you well know, there really are no truly objective valuation techniques out there. Regards, Paul

To: Czechsinthemail who wrote (15523)	3/19/1998 5:04:00 PM
From: Thean	Read Replies (3) \| Respond to of 95453

Baird, I have been practicing the switch strategy you discussed today since early last year. Over about 2 dozen switches I did since, I have all except one occasion when it didn't work out, it was on a FLC to PDS switch. In fact, I even made it a point to switch among the same class, like deep versus deep (e.g. between RIG and DO), offshore (FLC vs NE is a good one, FLC versus ESV and RDC are also not bad), MDCO vs CDG, PTEN vs UTI (I love this one). Today I think you've got opportunity to switch between FLC and ESV and get that $1 temporary premium. Steve S - After I switched to Datek, I have been able to buy at bid and sell at ask in HEAVILY TRADED NASDAQ issues. The spread sometimes expanded temporarily but I don't always noticed it. MM will eat FGII buyer/seller heart out by temporarily increasing the spread if one places a market order. Never, never place a market order. Even if one wants to buy at ask, place a limit order at the ask price. Over the years I've also been able to sell at the high of the day, especially if I place a MARKET order to sell at the open. This kind of reinforce the thinking that buying at the open is a NO NO. I pay $9.99 for Datek and $12 for Waterhouse. However, DATEK does not have allow stop order for non-Nasdaq stocks. Those who use full service broker to execute trade are definitely at a disadvantage here. The only time I use a market order is on day like yesterday when a panic selling turned into a panic buying. This is where a buy stop comes in very useful.