Yes, and also never underestimate the power of the
Post# of 72440
Posted On: 04/06/2016 2:26:10 PM
Yes, and also never underestimate the power of the market makers, who just LOVE to run stops. Remember that the market makers see the order books, so when you take the advice of the people on CNBS, I mean CNBC, and put a stop-loss order in, the market makers will walk the stock down on 100 share trades, collect your stock, and then let the stock price run right back up. I have seen this on giant stocks like JNJ and little stocks like AVXL and CTIX. It is most definitely NOT an urban legend.
If you need to put a stop in, use a TRAILING STOP that says something like, for example: sell stock if it goes down 50 cents from last trade. Or you can put in one that is based on percentage of move down. The market makers do NOT see trailing stops -- only your broker does.
Of course, this is assuming that your broker is not Interactive Brokers or the giants like Goldman. Many people have complained to me that IB traded against them.
If you need to put a stop in, use a TRAILING STOP that says something like, for example: sell stock if it goes down 50 cents from last trade. Or you can put in one that is based on percentage of move down. The market makers do NOT see trailing stops -- only your broker does.
Of course, this is assuming that your broker is not Interactive Brokers or the giants like Goldman. Many people have complained to me that IB traded against them.
(0)
(0)Innovation Pharmaceuticals Inc (IPIX) Stock Research Links
Scroll down for more posts ▼