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To: Robert Cohen who wrote (2275)	4/2/1999 5:11:00 PM
From: Chas	Respond to of 3216

Doc, I will try to get my son to respond as he is more knowledgeable with these type a orders. He uses various stop loss and stop orders. Limit orders that are used to exit a position and orders to enter a position such as at a breakout price. Enter the order, go to work at your regular job if you have one, and the order is executed at support price or better yet at breakout. I think. :}

To: Robert Cohen who wrote (2275)	4/3/1999 12:02:00 AM
From: kaz	Respond to of 3216

A stop loss is only executed if the price falls to the specified price (trading must take place at that price). That's why Market Makers can't just take out stops a few points below the trading price, they have to push the price down to points where they suspect (or know) a lot of stops to be. When you put in a stop loss order, it should sit in Datek's computer until the price is hit. Then the order should go live and be executed. Hope this helps. Paul Kaz

To: Robert Cohen who wrote (2275)	4/21/1999 4:52:00 PM
From: Chas	Respond to of 3216

Can you explain the difference between a stop loss order and a stop limit order? A stop loss (usually called a stop order by your broker) is used to protect your downside should a stock you own crater while you're out leading your life. Example: You own a stock that is now at $100 and place a stop order at $90. If the stock trades down to $90, your position will automatically be sold at that level. Here's the kicker. A stop order is a market order which means that if the stock in our example above closes at $91 one day and opens at $50 the next, your stop order will be executed at the first market price available at or under your stop order of $90. In other words, if a stock's price drops drastically in trading (a 'gap down'), a plain 'ol stop order won't protect you in the way you want. Instead of selling at $90, the stop loss could cause a sale of your stock at $50. This is where a stop limit order comes in. Setting a stop limit order protects you from selling into a drastic drop in your stock even though you have a stop order. A stop limit order limits the price at which the stop order will be executed and prevents you from automatically sell into a temporary, exaggerated drop in your stock's price. A stop limit order can be at set at any price at or below the stop order price. Let's look back to our example. Say I set a stop order at $90 and also set a stop limit order at $90. My stock closes at $91 but opens at $50 the next day. What happens? Instead of selling the stock at $50, the stop limit order prevents the sale and I still own the stock. The negative side of stop limit orders is the limited control you have over analyzing whether or not the event that causes a gap down is an overexaggeration. In some situations you want to get out of a position at the first available market price after a gap down, but in others the stock will recover quickly as less emotional traders recognize the stock has become oversold. The lesson? Use stop limit orders wisely. And remember, your broker shouldn't charge you any extra to place either one of these orders. Hope this helps! Jonathan Moreland Director of Research, Insidertrader.com iionline.com