|
PureBytes Links
Trading Reference Links
|
<x-html><!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
<body bgcolor="#B8B8B8">
Today, one or two stocks will trade greater volume then the exchanges in
the 1950s. I remember in the early 60s when a 6,000,000 share day
shut down most of the brokerage house back rooms. They couldn't
handle the volume. Ah! liquidity. Ira
<p>Earl Adamy wrote:
<blockquote TYPE=CITE><style></style>
<font size=-1>Not a nice story! Unfortunately,
traders and investors must protect themselves from those insiders who use
privileged position and information to take advantage of the outsiders.
I no longer trade stocks, however I used stops religiously when doing so
and stuck with highly liquid stocks with large float and strong average
daily volume. As a futures trader, I carefully watch what and where I trade
and only trade those markets where I feel comfortable placing stops. Verifying
liquidity is part of the due diligence for every trader and investor. Unfortunately,
40 years ago, stocks were still somewhat in disfavor (carry over from the
'29 crash) and I suspect even the most heavily traded stocks of the 50's
would be considered to be thinly traded by today's standards.</font> <font size=-1>Earl</font> -----
Original Message -----
<blockquote
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<div
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><b>From:</b>
mwricci</div>
<div style="FONT: 10pt arial"><b>To:</b> Realtraders@xxxxxxxxxxxx</div>
<div style="FONT: 10pt arial"><b>Sent:</b> Saturday, June 26, 1999 12:22
PM</div>
<div style="FONT: 10pt arial"><b>Subject:</b> Re Stops: A story</div>
<font color="#000000"><font size=-1>Forty years ago, after working
seven days a week and twelve hours a day, I had amassed a fortune of some
$55,000. I took a little nite course at the local highschool on how to
invest in stocks. After the course, which covered the subject real well,
considering the times, I found a stock in the paper that appealed to me.
I called the "Customers Man", who was employed by a well known brokerage
house and had given the course. I set up my account and placed my first
order.</font></font><font color="#000000"><font size=-1>
The stock I mentioned was called Coastal State Gas and was listed in the
NYSE for $11/share. I bought 5000 shares. My former teacher then said "Doctor,
would you like to put in a Protective Stop? It will help you get used to
them." I thought this was a good idea and so placed a sell stop at
$7.</font></font><font color="#000000"><font size=-1>
The next day, I was called and told that I had been stopped out at my stop
of $7.</font></font><font color="#000000"><font size=-1>I had just lost
$22.000. The following day it was back up to $11. The following week it
was trading at $17.</font></font><font color="#000000"><font size=-1>
What happened? My poor broker couldn't understand it, I couldn't understand
it, but I sure know now.</font></font><font color="#000000"><font size=-1>
The Specialist, whose job it is to keep an orderly market (and owns the
Yachts), saw my protective sell order on 5000S at $7 in his Book,
brought the price down to $7, and bought my 5000 shares for $7 for
his private account. He knew something was going on and took advantage
of a brain-washed sucker. He committed legal grand larceny, and I was out
a total of $52,000!</font></font><font color="#000000"><font size=-1>
Do I use stops? For futures, sure; for stocks, never again!</font></font><font color="#000000"><font size=-1>
Beware!</font></font><font color="#000000"><font size=-1>
MWR</font></font></blockquote>
</blockquote>
</body>
</html>
</x-html>From ???@??? Sat Jun 26 22:14:50 1999
Return-Path: <owner-realtraders@xxxxxxxxxxxx>
Received: from ml.nw.verio.net (ml.nw.verio.net [204.202.220.47])
by purebytes.com (8.8.7/8.8.7) with ESMTP id VAA14567
for <neal@xxxxxxxxxxxxx>; Sat, 26 Jun 1999 21:55:52 -0700
Received: (from majordom@xxxxxxxxx)
by ml.nw.verio.net (970819888) id UAA04434
for realtraders-sendemout; Sat, 26 Jun 1999 20:52:04 -0700 (PDT)
Received: from mail1.nwnet.net (mail1.nwnet.net [192.220.251.8])
by ml.nw.verio.net (970819888) with ESMTP id UAA04427
for <realtraders@xxxxxxxxxxxxxxx>; Sat, 26 Jun 1999 20:52:01 -0700 (PDT)
Received: from lhc-svr-02.redrivernet.com (lhc-svr-02.redrivernet.com [209.63.181.6])
by mail1.nwnet.net (970819888) with ESMTP id UAA18113
for <realtraders@xxxxxxxxxxxx>; Sat, 26 Jun 1999 20:51:59 -0700 (PDT)
Received: from [209.84.82.105] by lhc-svr-02.redrivernet.com (NTMail 4.20.0009/NU7672.00.89d427d6) with ESMTP id gunkfaaa for <realtraders@xxxxxxxxxxxx>; Sat, 26 Jun 1999 20:55:03 -0700
Message-Id: <3.0.6.32.19990626205247.00b6bc60@xxxxxxxxxxxxxxxxxxxx>
X-Sender: bobrabcd@xxxxxxxxxxxxxxxxxxxx
X-Mailer: QUALCOMM Windows Eudora Light Version 3.0.6 (32)
Date: Sat, 26 Jun 1999 20:52:47 -0700
To: realtraders@xxxxxxxxxxxx
From: "Robert A. Roeske" <bobrabcd@xxxxxxxxxxxxxxx>
Subject: GEN - website spelling
Mime-Version: 1.0
Content-Type: text/plain; charset="us-ascii"
Sender: owner-realtraders@xxxxxxxxxxxx
Precedence: bulk
Status:
Oops. I posted a website earlier that has audio interviews of market
analysts. The URL was incorrect. This is the correct spelling
http://www.elliottwave.com/wsu.
Sorry about that,
BobR
|