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Non-Tech : CYBERTRADER -- Ignore unavailable to you. Want to Upgrade?

To: brec who wrote (1630)	1/9/1999 6:36:00 PM
From: William W. Dwyer, Jr.	Read Replies (1) \| Respond to of 3216

I don't believe you can daytrade a stock unless your broker has shares available for you, through the clearing firm. CyBerTrader software automatically tells you if a stock is shortable or not, and will generally not allow you to short it unless it is available and shortable. I say "generally" because a stock may seem shortable but not be because of some FRB determination. I have been through this already. Not good. Let me just say that you can get yourself pretty darn screwed by trying to short a stock. Getting "stopped out" of a trade means simply that if you enter a trade and it goes against you by some amount you predetermine (like 1/8 point, 1/4 point, maybe even 1 point for small shares) then you immediately exit the trade (stop out, hit your stop, etc) as insurance to avoid a larger loss. Of course, you can re-enter soon if you then determine you're on the right side of a trade worth being in. For example, if you're waiting for a stock to top (for shorting) or to bottom (for going long), and your timing is off just a bit, you stop out (get out to preserve capital), then watch the stock for the "real" subsequent top or bottom and then consider re-entering the trade. Usually, you can re-enter and make enough to cover one or two well-chosen stops. If you stop out 2-3 times with only 1/8 point loss (I often stop with 1/16 point loss or even flat), then you may likely re-enter soon and make a full point or more, fully covering your losses and making a profit. It's a matter of timing that only comes with experience.....knowing what to expect will keep you in the right trades, and out of the wrong trades. These "stops" are usually mental stops, not real stop orders. Takes too long to really enter a stop order, although you can. Much better to enter a trade and know the point you will immediately exit...then do it. For example, if you go long a stock at the ask price and you immediately see selling at the bid, just exit at the bid quick (if you can). The stock is already going against you. Nothing to think about except how you can sell all your shares quickly and at the best price....which is usually a market order or selling via an ECN (ISLD perhaps), or SNET at a price one or two levels below the ask if stock is really moving against you fast. The sooner you're out, the sooner you stop your loss. Hope this helps.