|
PureBytes Links
Trading Reference Links
|
Tim and Lynn Lee wrote:
> My advice: Do not cancel replace an order. My own tally shows that
over 90% of these orders would have been fine if left
alone.
I can't imagine this being true.
> 1. You put the order in originally because it fit your plan...that
showed you began a disciplined approach to the trade.
Yes - and if the market just stood still at your will, this would be
perfect. Doesn't work that way though. Hopefully, you're plan is a
dynamic one - since markets surely are. If the market moves past you,
other than replacing, you have two options. Cancel and miss
the trade - unfortunately, many of the best trades cannot be had easily,
and this is likely to seriously impair your results. Or, even worse,
let it ride, where if the call is a good one you won't get filled, and
if it
starts to crap out you'll get filled going the other way.
> 2. It shows lack of patience to cancel and then chase the market.
Keep your own tally about how you would have been filled if
you stayed with the original order.
Often, if you've missed the move, then you've missed the opportunity.
The good trades won't see that price again for quite a while.
While a trader surely can chase too much, not chasing at all is far
worse. You'll be stuck with most of the crap, and little of the good
stuff. You'll need patience all right <g>.
> 3. If you really want to get the floor people mad, cancel replace a
lot.
If you really want to get clients mad, tell them they shouldn't use a
perfectly sensible and valuable trading tactic such as this.
A.J.
|