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The locals will try to trade in an area of clustered stops,
but can only do so if market conditions permit
(particularly true with liquid stocks).
The idea of a stop (for me) is that I WANT it to
be hit, that's why the stop is there. A stop
gets me out of the market if a trade goes
against me, or if it reaches my profit objective.
If your stops are consistently being hit when you
DON'T want them to be hit, you might be
placing your stops incorrectly.
>-What can be done (if anything) to lessen the possibility
> of your own stops being run?
Place your stops beyond support/resistance levels, not
before them. Fibonacci techniques are excellent for this.
-Neal.
---
DiNapoli Fibonacci techniques -
http://www.fibtrader.com
At 04:48 AM 7/4/98 +0000, WNW wrote:
>I apologize if anyone has responded to the following;
>if they have, I have missed it. Here is a repost:
>
>I am a new subscriber to this list;
> I've read several postings of late dealing with "running stops".
>Would someone be so kind as to explain in detail
>exactly what this process is?
>-What is the motivation of the floor trader?
>-How is it accomplished?
>-How does the floor trader profit from it?
>-What can be done (if anything) to lessen the possibility
> of your own stops being run?
>
>Any comments are welcome.
>Thanks in advance.
>wnw@xxxxxxxxxxxxxxxx
>
>
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