Re: Limit Down Bounce

[gm@xxxxxxxxxxxxx (Gerald Marisch)]

Randall:

I may agree with you with respect to "...a few minutes at most."  My whole
style of trading is based on "get in - get your money - and get out".

But with limit moves, there may be too "wide" of a bid-ask spread for a good
fill, the market may be moving "too fast", your "small order" may get
accidentally "bumped" for a bigger one (I know, this is illegal, but things
"...just do happen..."), etc.

In limit situations, err on the conservative side of caution and stand aside
UNLESS YOU'RE REALLY CONFIDENT IN YOUR CHARTING, DATA, ANALYSIS AND NERVES.
Once your order is placed/filled, it's too late to tell the broker you
changed your mind or you made a mistake.

You bought it - you own it!  And you may not be able to get out just at that
"right price".

Now, having written that, I'm ready for anyone's war story that proves me
wrong - how a trader made a million $ in a couple of minutes in a limit
market.

If you can (make the million $ and/or prove me wrong), GREAT.  All the more
power to you.

But my experience and opinion are that the odds for a little guy's quick
profit in a limit market are against you.


----- Original Message -----
From: "Randall Kurzon" <rkurzon@xxxxxxxxxxxxxx>
To: "Omega-list" <omega-list@xxxxxxxxxx>
Sent: Thursday, October 26, 2000 10:34 AM
Subject: Re: Limit Down Bounce


> I agree with your point but I may not have made myself clear in that I was
> thinking of only a very short term (a few minutes at most) long entry for
a
> quick few points. A perfect example just occured a few minutes ago.
>
> ----- Original Message -----
> From: "Gerald Marisch" <gm@xxxxxxxxxxxxx>
> To: "Randall Kurzon" <rkurzon@xxxxxxxxxxxxxx>; "Omega-list"
> <omega-list@xxxxxxxxxx>
> Sent: Thursday, October 26, 2000 10:22
> Subject: Re: Limit Down Bounce
>
>
> > Yea - I have a comment.
> >
> > DON'T!!!!!!!
> >
> > Let the "big boys" in New York and Chicago, settle down the market (like
> > water seeking its own level) before us little guys try trading.
> >
> > "They" have more money and influence than you and I - unless you have
> "deep
> > pockets" and like to take excessive risks with your money.
> >
> > In a "limit" situation, "follow" - don't "lead".
> >
> >
> > ----- Original Message -----
> > From: "Randall Kurzon" <rkurzon@xxxxxxxxxxxxxx>
> > To: "Omega-list" <omega-list@xxxxxxxxxx>
> > Sent: Thursday, October 26, 2000 9:38 AM
> > Subject: Limit Down Bounce
> >
> >
> > > I have noticed that almost every time the SP or the ND are halted at
> limit
> > > down it is followed by a bounce. I've been watching that for the last
5
> > > years and as far as I can remember there have been very, very few
times
> it
> > > does not bounce. Any comments as to the reliability of entering a
> position
> > > right after the market starts trading again from limit down?
> > >
> > > Randall
> > >
> > >
> >
>
>