Friday, September 7, 2007

Stop Orders

A reader left a comment about getting whipsawed in the last few weeks because of stop orders set below the market. When the fast decline was followed by a fast snap back it created what he called the STOP-LOSS VEE-SHAPED KNOCK-OUT PUNCH.I have never thought blanket use of stop orders was a good idea and have also written countless times about fast declines being followed by fast snapbacks. The reader’s comment reiterates my beliefs on this subject.I ten[...]

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[Source: The Money Blogs]

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