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Troy:
Welcome to the phenomenon known as "gunning the stops". Every trader on the floor knew where your stop was. In the pit it only takes one seller to offer a one lot into the obvious stop areas to generate a flurry of bids from resting stop orders designed to protect short positions. The knowledgeable floor traders sell into this flurry, and when the stops have all been taken out, guess what happens ... the market resumes its natural course South, and guys like you and I are left with the conclusion that trading sucks.
For some interesting thoughts about how to trade the stop gunners, you should check out George Angell's latest book. I forget what it's called but I saw it advertised again in IBD yesterday. If you get it make sure you get the free audio cassette that they were ofering with it a while back.. I lost my copy of the book by leaving it on a plane once but still listen to the cassette ... it's got some very useful advice on it.
All the best.
- Stuart
>>> Troy Kelley <tkelley@xxxxxxx> 07/21 7:15 PM >>>
I am trading 2 s&p contracts.
I went short at 10:15 today, and the market came up and took out my
stop, so I did a reversal and I went long at 10:17 and the market
screamed back the other way against me. I lost 1,500 bucks in about 5
minutes. That is about one weeks worth of hard earned profits, gone in
the blink of an eye.
Troy
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