| xander |
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Member, TeleChart
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| Registered User |
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| Unsure |
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| Tuesday, February 15, 2005 |
| Wednesday, February 23, 2005 6:10:26 PM |
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Stop-Limit Order
A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy or to sell at a specified price.
The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed. But, as with all limit orders, a stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast-moving markets where prices fluctuate wildly.
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I think Sally's point is that, insider's are more apt to all sell at the same time, at a point when they feel that the shares are fairly valued. If they have more info than you and you go into the stock semi-blind you may get hurt
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Dear Big Block,
It sounds to me as though you are an extremely short term trader. In which case option strategies to hedge your positions might not be the avenue you are wanting to go, as the trading fees associated with their execution would paralize your profits. I know Interactive Brokers offers contracts at $1 dollar per, but this is the best Ive seen or heard of. Which would represent ten percent of your daily profit per 10000 share trade.However, if u think u have a real winner you may want to hedge yourself and hold the position for a while.
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I am a very experienced level II trader and am familiar with IB set up. The basics of level II are quite straight forward. Price, size of order and ecn are the three main fields. As for seeing support resistance lines on the level II screen, i am not so sure.Back two years ago, yes. Seeing Morgan holding a level or First Boston, etc.. Was quite an easy task and so the screen was littered with relatively simple risk-free scalps.After the implementation of super montage, most of the players have wisened to the game and are now hiding behind various ecn's which makes determining their intentions next to impossible. Sometimes market makers unveil themselves and enlist the help of day traders to accomplish their goals. At these points it is easy making quick profits of simply buying or selling in from of them. However dont be upset if you find that that market maker has suddenly disappeared and someone is clobbering the stock. For a while after the implemetation of super montage, the game was to follow large size around and post in front of it. These days, the game is quite the opposite, be prepared to hit the size for all u got. A couple months back this was my best strategy, often producing dime moves while carrying heavy size. The whole point is that the level II screen is littered with annoying games that are played by thousands of money hungry scalpers and market makers, all who have better per/fill/trade or share deals than u. Who, without the help of good technical analysis skills will leave yu frustrated and in debt. Pure level II trading is a reactionary game with millions of head fakes. If you can win at this game all you have to be able to do is beat the order entry computers that follow you around the market and post better bids and offers than u at the most inappropriate times. While no books have i found that are informative about level II, I find Active Trader to be a good source for the occasional tip and background info. My advise pick your entries and exits, use level II as a means of entry and exit, as an execution platform it is more than straight-forward, as a trading strategy it is not. So just use it to improve trading efficiency, not to generate signals
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google headed for 300/ share
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