[EquisMetaStock Group] Re: Intraday or Closing Stop?

["metastkuser" <andysmith_999@xxxxxxxxxxx>]

Ross,

Thanks for the insight. I failed to mention I trade strictly stocks and ETFs (leveraged and regular). 

I guess if you follow the notion that the market Open is "amateur hour" and the Close is when the professionals trade, it makes sense to use closing stops. If that is to be believed, then maybe it's not so important what the volume is at the close versus any other time?

Also, do you have an opinion on using the Ask versus the Last as your stop trigger?

Thanks,
Andy




--- In equismetastock@xxxxxxxxxxxxxxx, "jawjahtek" <jawjahtek@xxx> wrote:
>
> Yes.
> In my experience, it is dependent on the security traded.
> A closing stop is best for stocks that have large volume near the end of the trading day.
> An intraday stop is best for currencies that trade 24 hours with volume spikes throughout the day as various parts of the world end their trading for the day.
> I do not trade options, but I imagine that anything less than the most active options would be traded with an intraday stop.
> This is bacause the closing price on most options is simply the last trade in that option; it could be a single option trade that occurred at any time of the day.
> Bottom line: you have to know some things about the security that you are trading. Intraday volume seems to be the most important influence on setting stops intraday or closing. 
> 
> Ross
> 
> 
> P.S. I like Kaufmann's work a lot; none of the above is intended as a knock on his work.
> 
> --- In equismetastock@xxxxxxxxxxxxxxx, "metastkuser" <andysmith_999@> wrote:
> >
> > Several gurus including Perry Kaufmann say that setting a closing stop is superior than an intraday stop. Has anyone any experience with both?
> >
>




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