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Re: AAPL, Flash crash LOL

By: capt_nemo in ROUND | Recommend this post (0)
Tue, 06 Mar 12 8:18 AM | 44 view(s)
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Msg. 39419 of 45651
(This msg. is a reply to 39410 by Decomposed)

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Thats what the difference is between noob traders and seasoned traders, as yourself DE!!!! I had a problem, dozing off with my finger on the buy or sell button. LOL One of those I made $1700 in 2 minutes, trading FAZ, That was crazy.




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Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.




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The above is a reply to the following message:
Re: AAPL, Flash crash LOL
By: Decomposed
in ROUND
Mon, 05 Mar 12 9:48 PM
Msg. 39410 of 45651

Those flash crashes serve the purpose of allowing the brokers to buy up shares from everyone who was stupid enough to put a STOP LOSS order in place.

In the chart below, AAPL never "really" fell below $533. But if someone had a STOP LOSS at $533, the flash crash allowed the brokerage to steal the shares at $526 before bouncing the price back to $533 a few seconds later.

It's quite a gimmick. It's also what cost me my AOL shares a decade ago.

Lesson learned? Always use a STOP LIMIT, not a STOP LOSS. In this example, a STOP LIMIT at $533/531 would have said to "sell shares if $533 is reached, but only if a price of $531 or better can be obtained."

It makes a world of difference.


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