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

To: john o who wrote (3518)	1/23/1999 7:00:00 PM
From: Rick Faurot	Read Replies (3) \| Respond to of 7382

Stops are always mental, not actual stop orders. Stop orders entered into the system can be seen by MMs. They will drop down like vultures to pick them off and then go on about their business. Once I buy a stock I immediately cue up a sell at the bid and begin to watch action. I look at other stocks I use as indicators to see if they are heading up or not. I watch the major indices to see if they are heading up or not. I watch L2 on my trade very carefully to see whether the movement is up or down. If I see anything at all that doesn't look right, I exit the trade immediately. I'd rather flat it than lose an eighth. Many times the mere fact that a stock doesn't begin an upward move is a sign it is ready to tank. If the trade goes my way and the stock starts to tick up, I watch for the velocity of up movement. If it is steady and a buying panic sets in I watch and wait for the move to weaken. As soon as it does, I look for an exit, usually a couple of ticks above the inside ask. I like to post my offer two or three ticks up and get taken out as the trade moves up through me. If the move fades fast I will exit fast at the bid or below. I don't want to get caught in a shake if I can help it. That's the basics. RickF Ps. It is rare that a stock tanks immediately after I fill. This is because I check the bid side before I buy. The bid side has to have evenly spaced tiers with a good supply at the inside. If the inside bid is weak, I do not enter.