I'm now using contingent orders instead of stop loss orders,
after that happened to me too today, on the same stock. The problem
is that, even if for only a millisecond, the bid drops below your
stop loss, you are triggered. Even if the price doesn't ever go
below your stop loss.
you can make a contingent order on the stock itself. So, IF SBCF
drops below 1.20, THEN sell x shares of SBCF at market price. The
market maker never sees the order until it actually triggers, which
is also a good thing!
I'm now using contingent orders
SBCF
Posted by frtaylor on 1st of Nov 2010 at 08:51 pm
I'm now using contingent orders instead of stop loss orders, after that happened to me too today, on the same stock. The problem is that, even if for only a millisecond, the bid drops below your stop loss, you are triggered. Even if the price doesn't ever go below your stop loss.
on a stock like SBCF,
Posted by Michael on 1st of Nov 2010 at 09:10 pm
on a stock like SBCF, what would your order be contingent upon?
you can make a contingent
Posted by frtaylor on 1st of Nov 2010 at 09:28 pm
you can make a contingent order on the stock itself. So, IF SBCF drops below 1.20, THEN sell x shares of SBCF at market price. The market maker never sees the order until it actually triggers, which is also a good thing!
thanks
Posted by Michael on 1st of Nov 2010 at 10:51 pm
thanks