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DISCH wrote:
>
> Greatelto@xxxxxxx wrote:
> >
> > One very big thing you have to keep in mind about a stop loss order. In the
> > case of IOM, it is traded on the NYSE and that is where the stop loss is
> > entered....the primary market. Any trading in the Third Market or after
> > hours, regardless of where it is, will have no impact on the stop loss order
> > until trading resumes in IOM on the NYSE. Only trades on the NYSE can
> > activate the stop loss.
> >
> > Stop loss orders and stop limit orders are no guarantee of loss protection.
> >
> > Jerry
>
> Jerry,
>
> I'm going to need an explanation on this one. I've heard the same thing
> before, but barring the possibility of having a surgical implant
> permanently wiring myself to the Market (24 hour a day trading), I don't
> know what other options I have.
>
> What a Stop Limit Order says to me is that I always have the maximum
> amount of protection that is available to me at any given moment. If
> you have an approach that offers more protection, with less effort or
> lower cost, I would appreciate the input.
>
> Thanks,
> Bob
You are correct, Bob. You have the maximum amount of protection that is
available at any given moment. Unfortunately, it still may not do what
you would like or expect. If you have a Stop at 10, Limit 9.5, and the
stock closed at 11 and opened the next day at 9, the order you placed
then becomes a market order at 9.5 or higher. If the stock continues to
6, then you have not been stopped out, your loss protection would not
have been triggered. This, I believe, is how stocks become "long term
holds".
Al Taglavore
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