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<DIV><FONT color=#000000 size=2>That is precisely the problem I have been
struggling with also. I am a Fidelity customer.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT><FONT size=2>I have a small account at
DLJDirect. They impose the same limitations.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I have decided that with over the counter stocks I use mental
stops and mental targets. I prefer big board stocks.</FONT></DIV>
<DIV><FONT size=2>When can place a stop loss order I move my stops a lot when my
trade item moves in the right direction, but...</FONT></DIV>
<DIV><FONT size=2>For NASDAQ stocks it is nerve-wracking to watch like a hawk
for the move in the wrong direction. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>When there is a significant profitable move I often sell half
of the position (or cover half). If it is a really big profit</FONT></DIV>
<DIV><FONT size=2>I close out enough of it to have a break-even and let the rest
run. This is good only for the right moves, the</FONT></DIV>
<DIV><FONT size=2>hawk has to be alert and take brutal action when it moves the
other way. Tolerate no more than 5% loss if</FONT></DIV>
<DIV><FONT size=2>possible.</FONT></DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: 5px">
<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Linda Swope <<A
href="mailto:lswope@xxxxxxxxxxx";>lswope@xxxxxxxxxxx</A>><BR><B>To:
</B>RealTraders Discussion Group <<A
href="mailto:realtraders@xxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxx</A>><BR><B>Date:
</B>Friday, March 12, 1999 2:24 PM<BR><B>Subject: </B>Stocks: stops mental
or real<BR><BR></DIV></FONT>
<DIV><FONT color=#000000>I'm trying to work some of the physical kinks out
of my system before I begin to trade. I'm starting again with swing
trading and figure the move I'm trying to capture will take 0-5
days.</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV><FONT color=#000000>I'm wrestling with how to place stops. I won
the psychological battle and am able to take a loss. The problem is my
Fidelity software doesn't allow me to place a stop loss order on a NASDAQ
stock. I can do it on their website, but it's slow and
cumbersome. So fine, I just trade NYSE stocks. Then if I place a
stop loss order to sell, I can't place a limit sell order because the system
only honors one sell order. So now I have to watch like a hawk to see
if it hits my target. </FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV><FONT color=#000000>I can handle a mental stop, but if I'm relying on a
mental stop I have to watch like a hawk for the downside. And if I
rely on a mental stop, I might as well trade NASD stocks too.</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>Here's the question... accepting the fact that I'm going to have to
watch like a hawk at the other end, is it better to have a mental stop or a
mental target? </DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV><FONT color=#000000>Thanks for your time!<BR>Swope's Mountain
Photography<BR>Climb the mountains & get their glad tidings: Peace will
flow into you as sunshine into flower; the winds will blow their freshness
into you & storms their energy, & cares will drop off you like
autumn leaves. John Muir 1838 - 1914</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV><FONT color=#000000></FONT> </DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sat Mar 13 10:31:30 1999
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Date: Sat, 13 Mar 1999 11:05:48 -0600
Reply-To: mig@xxxxxxxxxx
Sender: owner-realtraders@xxxxxxxxxxxxxx
From: "Dennis Peterson" <mig@xxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: GEN: Trading the Pivot
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<DIV>RealTraders,</DIV>
<DIV> </DIV>
<DIV>
<DIV>Attached are two text files on the performance of a system that I am
working on. I am developing the system (to use as a first filter in a more
complex system) using the theory on the Pivot as described at <A
href="http://news.bridge.com/NEWS/gfiv4_10.html";>http://news.bridge.com/NEWS/gfiv4_10.html</A></DIV>
<DIV>The system is currently buying the open tomorrow if the open is between
today's R2 and R1 resistance, and it is selling the open tomorrow if the open is
between today's S1 and S2 support ... that's it except for MM and PT intraday
stops.</DIV>
<DIV> </DIV>
<DIV>The back testing was on ten years of corn data (back adjusted), one without
any costs ($6500 gain), and one with $37.50 or three ticks costs ($11000
loss). HELLO! These results are indicating that Costs and Slippage
will take a trader out of the game in the long run if they are not exceptional
(top 5 percent) ... my assumption. I optimized the back test using
MoneyManagement and ProfitTarget stops which did improve the results quite a
bit. All trades were offset at the close if not stopped out
intraday.</DIV>
<DIV> </DIV>
<DIV>My next task is to hook up some inputs to something that will filter out
volatility (noise) so that the system can be further optomized. Any
ideas?</DIV>
<DIV> </DIV>
<DIV>This is the traditional pivot that the floor traders use ... these results
really aren't much of a curve fit (except for the MM & PT stops) ... I think
I do see a slight edege here. I will work with it some more and then get
back with my observations and ideas.</DIV>
<DIV> </DIV>
<DIV>Some additional information on pivot theory can be viewed at Thomas
Drinka's Current Research (see Chapter 10 - Value Area Support and Resistance)
<A
href="http://www.ecnet.net/users/miag/facstaff/tpd/research.htm";>http://www.ecnet.net/users/miag/facstaff/tpd/research.htm</A></DIV></DIV>
<DIV> </DIV>
<DIV>May the Pivot be with you,</DIV>
<DIV>
<DIV>Dennis</DIV>
<DIV> <A
href="http://homepage.macomb.com/~mig/home.htm";>http://homepage.macomb.com/~mig/home.htm</A></DIV></DIV></BODY></HTML>
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