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My strategy is also to trade retracements, but I look to enter in the
direction of the trend once the retracement has proved it is a retracement
and not a trend reversal. So by its very nature the strategy dictates
entering on a stop. It usually allows me to use pretty tight protective
stops, usually less than 100pts from my entry, again because the market is
going my way by the time I am in.
>From what you say it looks like if you had entered on either a stop in the
direction of the move or managed to get your limit filled you would have
been OK. The market order killed it for you, as is so often the case. What
a pain!
Actually that reminds me of the other fact about entering on limit orders
which is that you always get filled on the losers but can often be left
"unable" on the winners.
Anyway limit, stop, market, MIT, etc unless we get another move soon it
looks like both of us have had our fill for this week!
Thanks for your thoughts - have a good weekend.
Simon
-----Original Message-----
From: Gary Kramer <gmkramer@xxxxxxxxxxxx>
To: UKTrading@xxxxxxxxxxxxx <UKTrading@xxxxxxxxxxxxx>; RealTraders
Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: 14 August 1998 18:50
Subject: Re: Enter on Stops ?
>The type of order depends upon your trading strategy. I daytrade S&Ps
using
>retracements as the basis for getting into a trade. I prefer to use MIT or
>Limit orders to get in. This morning I wanted to short the market at
108450
>as the contract traded below this. it moved up quickly to this level
before
>I could get my limit order in. I therefore decided to get in at the
market.
>My fill was at 1083, so I placed my stop at 108560 (I always use a stop of
>about 2 points). The market bounced a little higher and took out my stop.
>As expected, it then headed lower to about 1082 over the next 10 minutes,
>eventually getting down to 1072! If I had gotten into the trade at my
limit
>price, i would have had a nice profit as opposed to a 2+ point loss!!
>
>Gary
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