Go to Jeff Salisbury LWGate Home Page.From: "NANCY POLCARO" <ZILLAGIRL@msn.com>
Subject: Re: [CANSLIM] Buy Stop Limit orders?
Date: Fri, 6 Sep 2002 20:14:27 -0700
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- ------=_NextPart_001_0000_01C255E2.0049C680 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks Tom-you dont have a chart to go with that do you-(haha) nancy =20 =20 - ----- Original Message ----- From: Tom Worley Sent: Friday, September 06, 2002 7:25 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Buy Stop Limit orders? =20 Nancy, a stop order converts to a market order (wherever the market is th= en). A stop LIMIT order converts to a LIMIT order (again, wherever the ma= rket is). So if the stop price is hit by a big gap, then the stop order b= ecomes a market, and naturally executes, altho at a price that may be a r= eal surprise. A stop LIMIT order, because it now is a LIMIT order, may no= t execute if the market moved outside of the LIMIT range. =20 Example: you find an absolutely perfect, classic, textbook cup and handle= . Can't find a single thing wrong with either the chart or its fundamenta= ls, even after exhaustive hours of due diligence (ok, I admit it, I like = to fantasize). =20 You determine that the perfect pivot point is exactly $25.20, so you ente= r a Buy Stop order at $25.30. Your friend, however, enters a Buy Stop LIM= IT order at Buy Stop $25.30, LIMIT $26.46 (5% over the pivot). Shortly be= fore the open, the company announces that it has accepted a cash buyout a= t $29, and the stock gaps to that price (or higher, or just under) as the= shorts immediately cover. Your buy is executed at around $29, and the be= st you can hope for is to sell at a breakeven, if you are lucky cover tra= nsaction costs. Your friend's order never executes because of the LIMIT a= nd is able to simply cancel the order when the news is discovered. =20 Exactly the same thing can happen on a Sell Stop / Sell Stop LIMIT order.= A stop order means you take what the market gives you, and can be trigge= red when the volume might have kept you out of the trade entirely. A stop= LIMIT order means you may never get an execution, but may have a second = chance to evaluate the situation, and change the order, or cancel it enti= rely. =20 As one further comment, many firms still will not accept Stop LIMIT order= s on NASDAQ stocks, especially if they are not very liquid. =20 - ----- Original Message ----- =20 From: NANCY POLCARO =20 To: canslim =20 Sent: Friday, September 06, 2002 4:10 PM Subject: Re: [CANSLIM] Buy Stop Limit orders? which is right? One says a stop order will always execute somewhere even= if it is not at the stop price( this is what I thought) and one says the= market can pass through the stop and it will never be executed. They bo= th can not be correct. Advice from the more experienced then I please. = Thanks again for the help nancy =20 - ----- Original Message ----- From: Dan Forant Sent: Friday, September 06, 2002 10:57 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Buy Stop Limit orders? =20 A stop order, buy or sell will always execute (somewhere). A Stop Limit order may not if the market blows up through the stop *limit*. DanF - ----- Original Message ----- From: "david frank" <camelot.homes@charter.net> To: <canslim@lists.xmission.com> Sent: Friday, September 06, 2002 12:53 PM Subject: Re: [CANSLIM] Buy Stop Limit orders? > Warren, the bad thing about a stop order is that it is a secondary orde= r. A > broker doesn't have to execute it, thereby, you don't really have any > recourse, if it is not executed, although the price of the stock was within > your price parameters. If the price of the stock is outside of your sto= p, it > will not execute. dave > ----- Original Message ----- > From: "Warren Keuffel" <wkeuffel@xmission.com> > To: "CANSLIM list" <canslim@lists.xmission.com> > Sent: Friday, September 06, 2002 10:55 AM > Subject: [CANSLIM] Buy Stop Limit orders? > > > > I am curious (yellow) -- sorry, bad joke that will be undersood only = by > > those of a certain age, if no one "gets" it I will explain, if asked = - -- > > > > anyway, back to the subject -- whether people here have used buy stop > > limit orders to trigger a purchase if the price of a stock rises abov= e > > the limit price. You would need to use this with some sort of manual = or > > automatic scan for increased volume to make a good buy on a breakout, > > but given the volume, seems like a buy stop limit order would help on= e > > buy at the pivot point. Or not? > > > > Thanks, > > Warren > > > > > > - > > -To subscribe/unsubscribe, email "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your email. > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_001_0000_01C255E2.0049C680 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <HTML><BODY BGCOLOR=3D"#ffffff" STYLE=3D"font:10pt verdana; border:none;b= ackground-color:#ffffff; "><DIV>Thanks Tom-you dont have a chart to go wi= th that do you-(haha) nancy </DIV> <DIV> </DIV> <BLOCKQUOT= E style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDE= R-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt A= rial">----- Original Message -----</DIV> <DIV style=3D"BACKGROUND: #e4e4e= 4; FONT: 10pt Arial; COLOR: black"><B>From:</B> Tom Worley</DIV> <DIV sty= le=3D"FONT: 10pt Arial"><B>Sent:</B> Friday, September 06, 2002 7:25 PM</= DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> canslim@lists.xmission.co= m</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> Re: [CANSLIM] Buy= Stop Limit orders?</DIV> <DIV> </DIV> <META content=3D"MSHTML 6.00.= 2719.2200" name=3DGENERATOR> <STYLE></STYLE> <DIV><FONT face=3DArial siz= e=3D3>Nancy, a stop order converts to a market order (wherever the market= is then). A stop LIMIT order converts to a LIMIT order (again, wherever = the market is). So if the stop price is hit by a big gap, then the stop o= rder becomes a market, and naturally executes, altho at a price that may = be a real surprise. A stop LIMIT order, because it now is a LIMIT order, = may not execute if the market moved outside of the LIMIT range.</FONT></D= IV> <DIV><FONT face=3DArial size=3D3></FONT> </DIV> <DIV><FONT face=3D= Arial size=3D3>Example: you find an absolutely perfect, classic, textbook= cup and handle. Can't find a single thing wrong with either the chart or= its fundamentals, even after exhaustive hours of due diligence (ok, I ad= mit it, I like to fantasize).</FONT></DIV> <DIV><FONT face=3DArial size=3D= 3></FONT> </DIV> <DIV><FONT face=3DArial size=3D3>You determine that= the perfect pivot point is exactly $25.20, so you enter a Buy Stop order= at $25.30. Your friend, however, enters a Buy Stop LIMIT order at Buy St= op $25.30, LIMIT $26.46 (5% over the pivot). Shortly before the open, the= company announces that it has accepted a cash buyout at $29, and the sto= ck gaps to that price (or higher, or just under) as the shorts immediatel= y cover. Your buy is executed at around $29, and the best you can hope fo= r is to sell at a breakeven, if you are lucky cover transaction costs. Yo= ur friend's order never executes because of the LIMIT and is able to simp= ly cancel the order when the news is discovered.</FONT></DIV> <DIV><FONT = face=3DArial size=3D3></FONT> </DIV> <DIV><FONT face=3DArial size=3D= 3>Exactly the same thing can happen on a Sell Stop / Sell Stop LIMIT orde= r. A stop order means you take what the market gives you, and can be trig= gered when the volume might have kept you out of the trade entirely. A st= op LIMIT order means you may never get an execution, but may have a secon= d chance to evaluate the situation, and change the order, or cancel it en= tirely.</FONT></DIV> <DIV><FONT face=3DArial size=3D3></FONT> </DIV>= <DIV><FONT face=3DArial size=3D3>As one further comment, many firms stil= l will not accept Stop LIMIT orders on NASDAQ stocks, especially if they = are not very liquid.</FONT></DIV> <DIV><FONT face=3DArial size=3D3></FONT= > </DIV> <DIV style=3D"FONT: 10pt arial">----- Original Message ----= - - <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A = title=3DZILLAGIRL@msn.com href=3D"mailto:ZILLAGIRL@msn.com">NANCY POLCARO= </A> </DIV> <DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com href=3D= "mailto:canslim@lists.xmission.com">canslim</A> </DIV> <DIV><B>Sent:</B> = Friday, September 06, 2002 4:10 PM</DIV> <DIV><B>Subject:</B> Re: [CANSLI= M] Buy Stop Limit orders?</DIV></DIV> <DIV><BR></DIV> <DIV>which is right= ? One says a stop order will always execute somewhere even if = it is not at the stop price( this is what I thought) and one says th= e market can pass through the stop and it will never be executed. T= hey both can not be correct. Advice from the more experienced then = I please. Thanks again for the help nancy</DIV> <DIV> </DIV> <= BLOCKQUOTE style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5= px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FON= T: 10pt Arial">----- Original Message -----</DIV> <DIV style=3D"BACKGROUN= D: #e4e4e4; FONT: 10pt Arial; COLOR: black"><B>From:</B> Dan Forant</DIV>= <DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Friday, September 06, 2002 = 10:57 AM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> canslim@lists.x= mission.com</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> Re: [CA= NSLIM] Buy Stop Limit orders?</DIV> <DIV> </DIV>A stop order, buy or= sell will always execute (somewhere). A Stop Limit<BR>order may not if t= he market blows up through the stop *limit*.<BR><BR>DanF<BR>----- Origina= l Message -----<BR>From: "david frank" <camelot.homes@charter.net><= BR>To: <canslim@lists.xmission.com><BR>Sent: Friday, September 06, = 2002 12:53 PM<BR>Subject: Re: [CANSLIM] Buy Stop Limit orders?<BR><BR><BR= >> Warren, the bad thing about a stop order is that it is a secondary = order.<BR>A<BR>> broker doesn't have to execute it, thereby, you don't= really have any<BR>> recourse, if it is not executed, although the pr= ice of the stock was<BR>within<BR>> your price parameters. If the pric= e of the stock is outside of your stop,<BR>it<BR>> will not execute. d= ave<BR>> ----- Original Message -----<BR>> From: "Warren Keuffel" &= lt;wkeuffel@xmission.com><BR>> To: "CANSLIM list" <canslim@lists= .xmission.com><BR>> Sent: Friday, September 06, 2002 10:55 AM<BR>&g= t; Subject: [CANSLIM] Buy Stop Limit orders?<BR>><BR>><BR>> >= I am curious (yellow) -- sorry, bad joke that will be undersood only by<= BR>> > those of a certain age, if no one "gets" it I will explain, = if asked --<BR>> ><BR>> > anyway, back to the subject -- whet= her people here have used buy stop<BR>> > limit orders to trigger a= purchase if the price of a stock rises above<BR>> > the limit pric= e. You would need to use this with some sort of manual or<BR>> > au= tomatic scan for increased volume to make a good buy on a breakout,<BR>&g= t; > but given the volume, seems like a buy stop limit order would hel= p one<BR>> > buy at the pivot point. Or not?<BR>> ><BR>> &= gt; Thanks,<BR>> > Warren<BR>> ><BR>> ><BR>> > -<= BR>> > -To subscribe/unsubscribe, email "majordomo@xmission.com"<BR= >> > -In the email body, write "subscribe canslim" or<BR>> > = - -"unsubscribe canslim". Do not use quotes in your email.<BR>><BR= >><BR>> -<BR>> -To subscribe/unsubscribe, email "majordomo@xmiss= ion.com"<BR>> -In the email body, write "subscribe canslim" or<BR>>= -"unsubscribe canslim". Do not use quotes in your email.<BR>><B= R><BR><BR>-<BR>-To subscribe/unsubscribe, email "majordomo@xmission.com"<= BR>-In the email body, write "subscribe canslim" or<BR>-"unsubscribe cans= lim". Do not use quotes in your email.<BR></BLOCKQUOTE></BLOCKQUOTE= ></BODY></HTML> - ------=_NextPart_001_0000_01C255E2.0049C680-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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