Stop-running. This is why people should NOT put in
Post# of 147891
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Posted On: 12/14/2021 10:53:38 AM
Stop-running. This is why people should NOT put in "hard" stops -- in other words, don't put in an order that says "sell if it gets down to 1.01."
If you just have to put in a stop, use a trailing stop (you can search it to see how that works). Hard stops show up in the market makers' books so they know how far to drop the price to take away your stock. With a trailing stop, only your broker knows.
I had a friend who had a hard stop on a high-priced NYSE stock. He only had 100 shares, but the market maker dropped the price by over a buck for a millisecond to take his hundred shares away, and then the price went back to where it had been. I also knew a guy who used to work for a market maker. He said that bored junior traders would do this for fun.
If you just have to put in a stop, use a trailing stop (you can search it to see how that works). Hard stops show up in the market makers' books so they know how far to drop the price to take away your stock. With a trailing stop, only your broker knows.
I had a friend who had a hard stop on a high-priced NYSE stock. He only had 100 shares, but the market maker dropped the price by over a buck for a millisecond to take his hundred shares away, and then the price went back to where it had been. I also knew a guy who used to work for a market maker. He said that bored junior traders would do this for fun.
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