SEON | SeniorCitizen - 9/20/2010 17:01When you use stops, you are gifting market makers.....versus picking sell points based upon strength....we are in a market of which users shall be on the defensive....producers should not be on the defensive...it is a backwards trading plan.
Not sure how I would be gifting market makers. They aren't stop orders...nobody knows my stop except me.
I've sold into strength before....the one that I still remember is Four Seasons Hotels. Sold at ~ $20 something and the rally lasted to 40 something.
Not sure why users should be any more on the defensive than producers. We're all trying to limit downside. If July 11 wheat falls, how low do I let it go before I stop the bleeding? Do I let it slide until I produce my wheat at a loss....all the while waiting for a dead cat bounce to sell into? If it hits my stop, the market has reversed and I want out anyway.
Edited by rank 9/20/2010 18:13
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Sell stop
