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Hi Jerry,
Oh if only that were true....All our stops would be safe !
Unfortunately, this Nasdaq rule (like the rule that's supposed to
prevent market makers from stepping away from "size", or the requirement
to display the correct # of shares to buy/sell on Level 2, yada, yada,
yada) is routinely ignored.
If you don't watch level 2 all day, chances are you don't realize how
greatly market makers manipulate thinly traded stock prices. (Especially
when only the bid side drops to scoop stops, while the ask side stays
the same)
I could give you (the mind boggles) many examples, but suffice it to
say, that I wouldn't depend on the letter of the law to bring victory to
your favor in a dispute like this. <g>
If you have real-time quotes, turn off the "time and sales" and just
turn on the "trades" and follow a small thinly-traded stock like TSRI.
That thing (and hundreds of others just like it) move on V A P O R. Not
only are there no trades for some price moves, but it's been up several
points for a few days at a time, with almost no volume, and (big
surprise) it drops even faster .........
The small cap/Russell 2000 resurrection is merely going to make it
harder to see this indisputable phenomenon, but if you plan to buy a
small cap on a breakout, it's certainly a good idea to check the avg.
volume first, then buy during the last 5 minutes of the day, after the
SOESers have backed out.
And unless I was going away on vacation, I would never set a hard stop
loss......you might just as well hand them your wallet.
Dick
Greatelto@xxxxxxx wrote:
> 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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