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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: MMK who wrote (8722)	2/11/1999 4:20:00 PM
From: William G. Murray	Respond to of 56535

MMK, A sell stop loss becomes a market order when the trigger is hit. In other words, if you put in a stop loss at $6.125, then your order becomes a market order as soon as the stock trades at $6.125. Since it is a market order, you may easily get less than $6.125 for your stock. There is also a limit stop loss order. Here you specify both the trigger and the minimum sell price. The risk here is a fast stock blowing right past your limit price. Hope this helps. B.M.

To: MMK who wrote (8722)	2/11/1999 4:23:00 PM
From: Wes Stevens	Respond to of 56535

MMK, Stop, limit. What you probably want is a sell stop. You can put it in now. Just pick a price say 6. If the stock dips below 6 it will turn into a market order and sell at market. A sell stop limit means you put in a stop and a limit. If it dips below your stop it becomes a limit order and will sell at your limit price or above. There are about three problems with stops. One is that the mm will stair step a stock down and catch the stops. They did that this morning with asct, ask Snerd. The second is that a lot of the discount houses will not allow stops on anything but NYSE listed stocks. The third is that they will not protect you if a stock gaps down or up at the open or after a trading halt.