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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Greg from Edmonton who wrote (3177)	5/13/1999 5:35:00 PM
From: keith massey	Read Replies (4) \| Respond to of 4467

Greg When used correctly buy-stops can work great. However just like stop losses you often get spikes in the price and you could get filled on the up spike followed by a drop just as quick. Without a stop in place you could lose a ton. I don't have any good example today but you know what I'm talking about. This is especially true when good news is expected....there is often a last minute speculation spike right before the news is released...if the news is bad...CRASH. A better strategy is to place buy stops just above key resistance levels. If a stock breaks through a strong resistance level the odds are on your side that the trend will continue because it took some serious buying power to drive it through the resistance level. With a service like CSW you can be paged if the stock every breaks this level and you can place a stop loss right away. With a full service broker I believe they will place a stop for you if you request as soon as the order is filled...I don't know any discount broker who do this. Stops should be set just below the resistance level with enough room to account for whipsaws. Best Regards KEITH