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Tim, I would say that YOU bought that mistake, not the broker. The broker
simply
entered the order as you placed it. You only allowed 1/4 point for the
stock to move.
You do not state the avg daily vol of the issue, which would help in
determining the
normal movement, but even with an Exon, this is a very tight stop. (A
dollar difference
between bid/asked?)
Al Taglavore
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> From: Tim Kruzel <TKruzel@xxxxxxxxxxxxxxxx>
> To: MetaStock User Group <metastock-list@xxxxxxxxx>
> Subject: Did I Get Screwed or Did I Just Screw Up?
> Date: Thursday, September 11, 1997 1:57 PM
>
> I would like to describe a trading situation that occurred to me today
> and get some opinions from you "salty and seasoned" traders.
>
> I bought a stock TRDT (OTC) about a month ago at 15. The bid/ask
> was bid:14, ask:15. Naturally I expected an upward breakout. The
> breakout came yesterday. The stock ended the day with a bid/ask of
> bid:16 1/4 ask: 17 1/8. In order to protect against a loss I placed a
> stop loss order at 16 just prior to the market's opening. To my
> surprise, 5 minutes after the market opened I received a
> confirmation call from my broker. My TRDT holding was sold at
> 16 1/8. As of moments ago TRDT has a bid/ask of bid: 17 5/8,
> ask: 17 7/8.
>
> Did I make an error in judgement with respect to where I set my
> stop loss given the wide bid/ask spread, or did I just get the shaft
> from a market maker? Any comments, questions, observations
> welcome. Thanks,
>
> Regards
> Tim
>
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