SI
SI
discoversearch

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 : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Catcher who wrote (20146)12/27/1998 11:31:00 AM
From: PMS Witch  Read Replies (1) | Respond to of 77400
 
Nice strategy!

Only one little problem: When a stock price reaches your stop price, your order becomes a market order. What if the stock opens quite a bit down the next day? Does your stop order get filled at a price MUCH lower than you expected? You could use the type of stop with a minimum price and ride it out, but you've joined the traders who become investors against their will.

Suggestion: We've seen the price rise quite a bit in anticipation of great earnings. How about buying the shares a few weeks early and selling into the euphoria. You could use puts too. Happy holidays, PW.



To: Catcher who wrote (20146)12/27/1998 11:50:00 AM
From: billwot  Respond to of 77400
 
Catcher-its a good program in theory, but often fails in the real world. Your stop order becomes a market order when the stop price is hit, but may be executed at a much lower price. Also, prices are often very volatile immediately after earnings are announced, and it would not be unusual to get stopped out, only to have the market turn around and go back up, leaving you behind before you can buy back in. I have tried this, and gotten burned.

billwot



HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News