Wyoming | Regarding stops:
Make sure you understand the mechanics of your brokerage's stop orders. There are some types of stop orders which are entered in such a way that if your stock plummeted in the overnight trade and opened "gapped down" below your limit price, your order might not get executed because it was entered as a limit order and now is way outside the bid/ask spread.
Most brokerages now have "server side stops" where the stop order doesn't appear on the tape. When I started trading in the late 90's, Schwab didn't have server-side stops. Your stops could be see on the Level-II tape, and day traders would see these and whip me out of my stop. The #1 rule today on Wall Street is never allow anyone else to see your intent.
If you don't understand the jibber-jabber that the brokerage includes in their help file or literature when you open the account, I strongly recommend talking to a broker and ask before you use their stop/stop-limit/etc orders.
Edited by WYDave 10/5/2011 11:25
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