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Dick wrote...."I had a stock (long since forgotten) that was trading around
44 when I
bought it, and languished in the 43-44 area for a couple of days. I had
heard that it was a good idea to place a 7-10% stop at the same time you
placed your order (to protect your capital,etc.) so I put in a stop loss
order at 41 1/16. (I had also heard that it wasn't good to place stop
orders at "even" numbers such as 40,41,etc.)
My sale at 41 1/16 was not only lowest price bid on the tape that
day....it was the ONLY sale at that price !<g>"
Your last statement is incorrect. For a sell stop order to be elected, the
stock has to trade that the stop price or lower (or higher if it is a buy
stop). Once your order is elected, then it becomes a market or limit order,
depending on how you entered it.
Might I suggest something. You don't want to be "with the crowd" on even
numbers so you put in a stop loss at 44 1/16.....in front of them! I would
have put the stop loss at 43 7/8 or 43 3/8. This is "behind them" and the
chances of me getting stopped out are lowered. Now, if I am a seller on the
upside, I want my order in front of the crowd. I want to sell before the
resistance is reached.
Jerry
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