Thanks for the help on this board. I have learned a lot. Here is probably a very simple question. I have an etrade account. If I want to put a trailing stop in case a stock that is running turns do I use stop limit, or stop. Can somebody please explain the mechanics so I don,t place a sell order and have the mm's come back and take 12 percent from me. Any suggestions relating to this topic would also be appreciated.
Thanks again
Posted by 10of13 on :
Welcome ...I personally dont use this feature...It has been said...and I tend to agree, that the MM's are able to "see this" and will bring the price down, if they need or want those shares, and take them right away... so I use a mental stop so to speak...there are traders that do utilize this feature...and I am sure the will also post... You can also do a search for the info...I know that it has been discussed before...in other threads... try this... http://www.allstocks.com/stockmessageboard/cgi-bin/ultimatebb.cgi
I considered using trailing stops for a while but concluded, like 10of13, that they're not appropriate for pinks.
Too volatile--what sort of stop would protect your capital yet not eject you at the first shake? Like it or not, those backtracking moments in the run are gut-check time. And your computer has no guts.
Posted by 32counter on :
Thanks fellas, I agree with what you are saying. My sister in law lost a substantial amount when the mm came back and bought and immediately went back to the price. I made great gains in NLST yesterday and gave them all back today when CHRIS fizzled overnight. Should have been around in the morning I guess. Thanks for the edvice