Stops : get the hell out of it

Discussion in 'Order Execution' started by springsnow, Jan 13, 2004.

  1. hello from france,

    i got a depressing (for me at least) worry : yesterday i was
    trading TINY through SOES. Bought it at 19,65 it went up
    i put my stop at 19,92 (limit 0,02 still with SOES), it went up for
    some more and then started to go down. It went down, past
    my post and continued to go down without actually hitting my
    stop... So how am i supposed to do it right? chose another
    route? arca? make it a market stop :/ ? have a larger stop 0,10?
    At the present time i just feel putting stop useless if it's just to
    see this happening again and again... How would you go out
    of a fast falling position?
    Any help most welcome :)
  2. Sittas


    If you use mechanical stops, it's better to use a stop that's quite a bit away from the trigger price or use a market order when your trigger price is hit. That way you'll get your fill.

    I almost always get a decent fill using either of these methods. But if i can i'll execute my orders by hand. It gives me an illusion of control :)

    Happy trading,
  3. did you notice which route was more efficient for you in those
    situations? SOES, Arca, Isld? Or it just depends on the situation?
  4. Sittas


    If you don't have any smart routing like IB's, i'd go for arca.

    Happy trading,
  5. Sittas


    my last post was a bit incomplete....

    Only go for arca if you use mechanical stops. Arca has good liquidity and some "smart routing". So chances are good that that you'll get a decent fill. But if you are able route your orders by hand and just pick the best route at that moment.
  6. Arnie


    Is this a swing trade (1-? days) or a "daytrade"? If you're daytrading it's best to sell into strength...let the price come to you. In a stock like TINY, EVERYBODY see when the momentum slows and the bids drop. Then you are left chasing a dropping market. Also, with a stop-limit as opposed to a stop-market, there may not be enough vol for your to get taken out at your limit. If its a swing trade, your stop should be outside of recent price action (1-3 days).
  7. dgmodel

    dgmodel Guest

    personally i prefer to trade without stops and have a mental stop instead... look at LGND yesterday i guy in the office yesterday had a block of shares on a stop they dropped the stock took and raised it back up... to me its like playing poker with your cards facing the dealer...