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> From: POMPATIS@xxxxxxx
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Fut:POP's rule #1
> Date: Saturday, August 08, 1998 3:34 PM
>
> Greetings all:
>
In day trading
> this can happen fairly quickly. My question is, how many cancell/replace
> orders can one use (moving the stop loss to the next level) befor pissing
off
> the floor broker? Is this a legitimate use of cancell/replace orders? It
> seems like a good tactic to me, especially if one is adding contracts
along
> the way. I know the topic of cancell/replace orders was flogged on this
fourm
> not too long ago, but this is different take here (I think).
If you are daytrading, especially S&P's, and you are afraid of moving your
stops via a c/r order because of the fear of incurring the wrath of some
surly jerk on the floor, 1) you will never make money and 2) you need to do
some research and find another brokerage arrangement. There are
significantly better alternatives to that once highly prized privilege of
calling the floor to have your orders arbed into the pit.
Ironically, as the alternatives to calling the floor have grown, the
attitudes among those on the floor really haven't changed; they are doing
you a favor and you are going to have to do business on their terms.
Some of this attitude is just the reality of the system that has been in
place for so long. The rules are set up to protect the floor. If it is a
very busy day, and most have been recently, and you call the floor to move
your stop up/down a handle on a one lot a couple of times, you're not going
to get a cheery attitude. You're more likely to get, "It'll have to go in
on paper". Ie., it's going to take a while and if the market moves through
that area in the next minute or two you may not find out for ten minutes or
so what happened and where. This is a transfer of risk from the floor to
you. It's just good business from the perspective of the floor. If I were
on the floor I'd do the same thing!
However, I'm not on the floor and I'm going to do what's in my best
interest. This means having the ability to c/r an order as often and as
quickly as I decide necessary to lower my risk and protect my profits.
Regards,
Tom Alexander
>
> Enough for now.
>
> Thank you all.
>
> Sincerely,
>
> Pomatis
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