(Total Views: 293)
Posted On: 02/25/2018 1:45:08 PM
Post# of 72446
Boy, anyone who puts a stop order on a small biotech is just asking to get stopped out.
True story: a friend of mine put a stop on on a large-cap stock, it was something like IBM or GM or something like that, that's heavily traded.
His stop was 10 points below the price. Shortly after he put the stop in, the stock suddenly plunged down 10 points and took out his stop, then immediately jumped back up to the price range where it had been all day.
If they will do that with a heavily traded stock, just imagine how easy it is for them to do it with a thinly-traded stock that's OTC.
In my opinion, not trading advice
, it is crazy to put a stop order in on a stock like this. In general I don't put stop orders in on ANY stock -- if I really want a stop, I put a TRAILING STOP in. This is something that only your broker sees -- if the stock goes down either a percentage or a number of cents down from where you put in the trailing stop, the brokerage puts in a sell order. This means that the MARKET MAKERS can't see this on their order books, the way they can with regular stop orders. If you get stopped out, at least you know that they didn't see you sitting there defenseless and came to steal your stock.
True story: a friend of mine put a stop on on a large-cap stock, it was something like IBM or GM or something like that, that's heavily traded.
His stop was 10 points below the price. Shortly after he put the stop in, the stock suddenly plunged down 10 points and took out his stop, then immediately jumped back up to the price range where it had been all day.
If they will do that with a heavily traded stock, just imagine how easy it is for them to do it with a thinly-traded stock that's OTC.
In my opinion, not trading advice
, it is crazy to put a stop order in on a stock like this. In general I don't put stop orders in on ANY stock -- if I really want a stop, I put a TRAILING STOP in. This is something that only your broker sees -- if the stock goes down either a percentage or a number of cents down from where you put in the trailing stop, the brokerage puts in a sell order. This means that the MARKET MAKERS can't see this on their order books, the way they can with regular stop orders. If you get stopped out, at least you know that they didn't see you sitting there defenseless and came to steal your stock.
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