Re: help with EL for exits

["Barry Silberman" <barry@xxxxxxxxxxxxxxxxxxxxx>]

Thanks Dennis and M.M for pointing me in right direction with regard to
differences between "stop" and "limit" orders.


For anyone else who was confused, here are some summary notes to help decide
when to use one or the other:

 ======================================================================
{ENTER position Long:

LIMIT -- buy at this price or lower
STOP  -- buy at this price or higher

A- working with support levels and you want to buy at cheapest price --- use
LIMIT
B- working with breakouts or want to ride momentum, so you don't care if you
pay a little more --- use STOP }


{ENTER a position Short:

LIMIT -- sell at this price or higher
STOP  -- sell at this price or lower

A- working with resistence levels or desire to sell tops --- use LIMIT
B- working with "Break Unders" ; want to ride negative momentum (don't care
if you sell for a little less) -- use STOP }


{EXIT a Long Position:

LIMIT --  sell at this price or higher
STOP  --  sell at this price or lower

A- working at resistence levels or exit at top to maximize returns --- use
LIMIT
B- looking to limit losses or place trailing stops --- use STOP }


{EXIT a SHORT position:

LIMIT  --  sell at this price or lower
STOP   --  sell at this price or higher

A-  working at support levels or exit at bottoms to maximize returns -- use
LIMIT
B-  looking to limit losses or place trailing stops --- use STOP  }