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I agree with Tim that C/R is a tool which should be used sparingly, especially
in commodities trading where much of the work is performed manually. When a C/R
is received, the original order must be located to determine whether or not it
has been filled, cancelled if not filled, then the new order can be released. If
one is using a lot of C/R, one is probably not trading comfortably. It's
generally a good idea to enter battle with both Plan A (trade is winner) and
Plan B (trade is loser) in hand. This will allow the trader to avoid many
problems which might otherwise require a C/R.
Earl
-----Original Message-----
From: Mark&TC <mseflin@xxxxxxxxxxxxx>
To: Timothy.H.Lee-1@xxxxxxxxxx <Timothy.H.Lee-1@xxxxxxxxxx>; RealTraders
Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Thursday, May 07, 1998 1:35 PM
Subject: Re: Orders : Cancel - Replace (Don't do it)
>Tim,
>
>I'm sorry, but I have to take issue with your statement...and coming from a
>floor broker your stated position in this post is obvious. Basically you
>have to do more work...and prefer not to. It's your way of getting the
>most pay for the lest amount of work.
>
>I'm an off floor trader (interday) and can tell you that my sats are
>different...and I cancel and replace a lot...if my broker has a problem
>with that then...it's time for a new broker. Being a free thinker, it is
>my right to re-analyze a position and change my mind as many times as I
>wish to.
>
>My main concern is for any of the neebies trading who might actually think
>you know what you are talk about...and if you did you won't be a
>broker...you'd be a private trader...and this is where most newbies get
>into trouble...is the moment they start listening to the broker. Brokers
>are order takers...NOTHING more...you work for the trader not the other way
>around. We pay your salary...now if you don't like the amount of work you
>do for the money (commission) you are getting then ask for higher
>commissions...commissions are NEGOTIATED, not law.
>
>Unless you can produce individual accounts statements with the orders
>placed and all of the cancel and replaced orders in the markets they where
>made for our verification...then your post means nothing other than what if
>have stated above.
>
>Thank you,
>Mark Seflin
>
>----------
>| From: Tim and Lynn Lee <Timothy.H.Lee-1@xxxxxxxxxx>
>| To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>| Subject: Orders : Cancel - Replace (Don't do it)
>| Date: Thursday, May 07, 1998 5:34 AM
>|
>| As a floor broker, I see a lot of orders cancelled and then replaced,
>usually if buying moving the order up and if selling moving the order down.
> But most of these orders would have been filled if left alone. 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.
>|
>| 1. You put the order in originally because it fit your plan...that showed
>you began a disciplined approach to the trade.
>| 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.
>| 3. If you really want to get the floor people mad, cancel replace a lot.
>| 4. Of course if you have to get out, then nothing else matters.
>| Timothy Lee
>|
>|
>
|