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Ira,
I think I have missed something. What is the 3% factor?
Thanks.
David
----- Original Message -----
From: Ira <ist@xxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Sent: Thursday, May 13, 1999 11:55 AM
Subject: Re: Stops
> That 3% factor at work again. Ira.
>
> Bob Fulks wrote:
>
> > At 10:38 AM -0400 5/12/99, Don Roos wrote:
> >
> > >I hope you all slept through that one (the Rubin resignation news).
30h
> > >down in 4m. A good reason to always have a stop in place. If things
> > >are going to go wrong, they will at the worst possible time: "due to
> > >system problems at the cme" the cubs system went down just before the
> > >Rubin selloff. Not nice to have to call in an order while the mkt is
> > >going down like a rock. The low in the es was the same as the spoos,
so
> > >no stop busting. They will have a hay day picking the cherries (stops
> > >in place) for awhile after today.
> >
> > Would stops have helped?
> >
> > If you were long and your stop got hit, it would have turned into a
market
> > order to sell. Since there would have been no buyers on the way down,
you
> > would have been filled at the bottom around 1330 for a $7500 loss per
> > contract.
> >
> > It looks like a good example of where the only protection would have
been a
> > standing put option.
> >
> > Comments?
> >
> > Bob Fulks
>
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