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Dear Pompatis,
POMPATIS@xxxxxxx wrote:
> It would seem that one way to avoid some of the mess would be to have the
> contingency orders in the market well ahead of the contingency price, whenever
> possible.
Yes. I started out using all market orders and no price orders (other than
protective stops). In time, I began using MIT orders, which are really just
contingent market orders, the converse of stop orders. Now, I use practically all
limit orders and no market orders (nor stops) --- my only market orders are for
bailing out of my position when the market is going opposite to my direction. I
enter almost exclusively with limit orders based on support/resistance and exit
almost exclusively on price projections. Admittedly, this takes watching the
screen like a hawk and pouncing at the critical time. When it works, which is
mostly, I'm buying within a tick or two of the bottom and liquidating within a
tick or two of the top. When it doesn't work, I lose a few ticks on the breakdown
of support following my entry --- I usually just liquidate my long, but if the
market has nowhere to go but down, I'll double the order and reverse. And when it
doesn't work on the exit, the market will blow right through my projected exit
price and I'll leave substantial money on the table. I hardly ever chase markets
--- unless there is simply nowhere to go but up. The awkward situation is when
the market goes to around 80% of my projection and reverses. Times that try my
soul. (Vice versa for selling.)
I encourage you to shift, in time, from market to limit orders. That
substantially enhanced my profitability. (And largely eliminated bad fills, huge
slippage, etc.)
Sincerely,
Richard
> I agree that a visit to Chicago is a great idea, and I have no
> doubt that I will eventualy visit the exchange.
>
> Any one else have any valuable tidbits as a result of visiting the floor, or
> from having worked there? All sharing is valuble and appreciated.
>
> Sincerely,
>
> Pompatis
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