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Here's an exercise for you ... as you watch the bars unfold, draw a horizontal
line wherever you think there might be a cluster of stops, then watch what
happens when the market starts drifting near those lines. One of the essential
things in trading is to always be aware of where the stops are clustered. There
are even some neat scalping techniques based on the premise that price will
reverse as soon as the stops are run and they generally run deeper than 1 tick.
Earl
-----Original Message-----
From: TomKochik@xxxxxxx <TomKochik@xxxxxxx>
To: oldfogey@xxxxxxxxxxx <oldfogey@xxxxxxxxxxx>; Omega-list@xxxxxxxxxx
<Omega-list@xxxxxxxxxx>
Date: Wednesday, August 19, 1998 10:02 PM
Subject: EZ FOOD for Locals - Close Stops ?
>I have paper traded the S&P500 for a while and always put my Stop just 1 Tick
>below the last bar's low. Assumimg that it works on paper, is there a danger
>that in real-life trading when my Stop that would be placed (just like I used
>to do paper trading )
>1 Tick below the last bar's low and sitting out there for a while, so that
>virtually everybody can see it - is it possible and reasonable to say that
>someone could just grab it from me ( simple take it , buy it at my Stop price,
>puting me out of tjhe market that way, even though just a minute later the
>market would start picking up the way I thought It would when entering the
>trade ?????
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