2+2 Stock Trading Competition

[tek]

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They were responsible for monitoring each position and if it hit their exit price they placed a market order. What are the pros and cons of each? Is one generally preferred over the other?

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Good question. On the first, the pro is "you don't show the market your hand" and the con is "you have to be glued to the screen during open market hours"
On the second, the pro is "you can place your stop order and turn your monitor off and do something else", the con is "you show the market your hand, but this is not significant unless you are trading size"

Market orders get priority execution over stop orders (or limit orders) so fills should be slightly better.

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You don't have to be glued to the screen: QuoTrek

[tek]

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On the second the con is "you show the market your hand, but this is not significant unless you are trading size".

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Size is relative to the issue you are trading...

I prefer mental stop losses to actual stop loss orders on all my trades. Any thoughts on this?

[Dan Mezick]

Lawrence McMillan says the same re: mental stops.

Discussion of "Mental" Stops
http://www.daytradersbulletin.com/ht...ive_stops.html

Trading Commandments
http://www.thestreet.com/c/rs/20030226/transcript.html

[Sniper]

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You don't have to be glued to the screen: QuoTrek

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Quotrek is one example of the Ultimate in "glued to the screen", as your screen goes with you whereever you are.

[wildwood]

I just want to add to the discussion on mental stops. They are fine, but there is one important point to consider. When your trading in the market, above all, you have to know yourself. If you're long and the stock falls to your mental stop, it's very easy to adjust the mental stop lower and lower and lower. All of a sudden what would have been a small loss turns into a whopper. Always decide your uncle point before you put the trade on because once you're in, you lose your objectivity. Iron discipline is key whether your stop is mental or physical. fwiw

[Dan Mezick]

wildwood,

Good advice here. I believe it applies to seasones and experienced players only.

Even then, as part of the pre-trade documentation i believe you must write down all the boundaries of the trade such that the "mental" stop is more than a mere thought.

I believe mental-stops can be a major "leak" in the trading game of new players.

I agree completely with your post.

[Sniper]

Not honoring your stops and doubling down on losers are two of the biggest mistakes that newbie traders make. Right up there with selecting the wrong stocks at the wrong time.

[kitaristi0]

Yeah. Seems I'm up to number 2 in the rankings.

[jdoe]

I am JPKRUSE

[Dan Mezick]

....he has a near 20% gain and no holdings.

Here's the report:

COMPETITIONS >>

Competition ID: TwoPlusTwoEvent001
Member Login:

Total Equity 597,829.90 Total Return 19.57%
Cash 597,829.90 Today's Return 0.00%
Margin 0 This Week's Return 17.49%
Interest Earned 175.94 This Month's Return 19.55%
Interest Paid 0.00


Symbol L/S Quantity Cost Curr Price Change Curr Value Gain/Loss % Chg
(No records found)


WHo can provide more information on the holdings that produced this incredible 10-day return?