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.

Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Coenen who wrote (25044)	11/21/1998 2:07:00 AM
From: joe	Read Replies (2) \| Respond to of 45548

A buy stop, as I understand it, will trigger off a market buy once a higher price has been reached from where the order was set. For example, if COMS is at $39 7/8 today (more or less), I might want to set a buy stop at $40.5. If the stock price hits $40.5, then my order will buy the stock as soon as it can for whatever price it is able to. You can use this, when you can't be around to watch the tape. You might come back to the tape and find out the price is already at $41.25 for instance, possibly not a desired buy point. I think this stuff is usually in the help session in your online brokerage. It's also in the Barron's business dictionary, I believe. hope this helps, joe

To: Bill Coenen who wrote (25044)	11/21/1998 7:43:00 AM
From: Wayners	Read Replies (3) \| Respond to of 45548

The buy stop works because it can get you into a stock in a lightning quick market. If I saw a break, then waited to manually get a market order in on my browser or by waiting on the phone a minute for a broker, then accounting for slippage on that order--you can easily miss a lot of bucks fast. You can miss the entire move if you are trying to pick up quarters or halfs. The answer is a buy stop where a computer places your order at the speed of light. A buy stop limit works just as good for most active stocks with volume well over a million shares per day. If you have an ECN like Attain or Executiner or something--you are only a click away from a fill and there is no such thing as a buy stop, but you still have to be fast with the mouse clcik. I'd rather have my order in and ready to go because ANY delay whatsover will cost you big dollars. Also like Joe said, you don't have to watch it every second either which is a big plus for those of us that spend way too much time posting messages on S.I. during the day. (By the way Joe if you keep posting 200 messages a day I'll never catch up to your post totals.)