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I think you should do that if you take the risk of publicly announcing your position, and it is probably better than plain stops (which reinforce the current tr
by dmichulke 11y ago
I think you should do that if you take the risk of publicly announcing your position, and it is probably better than plain stops (which reinforce the current trend)
However, even then you might have bad luck such as in this case (which admittedly doesn't happen very often)
http://www.bloomberg.com/news/articles/2010-10-18/nyse-euronext-cancels-trades-of-s-p-500-etf-at-9-6-below-opening-price?cmpid=yhoo http://www.bloomberg.com/news/articles/2010-10-18/nyse-euron...
- ant6n 11y agoI don't get you point, or how your link reinforces your point. If I put in a limit order to buy some stock at 20% discount, yes I'm announcing my intention to buy. Is my order for crumbs going to provide the floor on the price because I 'announced my intention'? I feel it's more likely in a moment of volatility like this, that I pick up some bargain. What bad thing may happen except actual bugs with limit orders, which shouldn't really happen?
- dmichulke 11y agoThe link shows that there were several people that bet on mean reversion and their trades were cancelled. The interesting bit is that the decision to cancel the trades seems very arbitrary, at the very least to me.
- ant6n 11y agoSo during moments of high volatility orders got cancelled, but that may happen regardless of whether the orders had been sitting around for a month or a second. Certainly doesn't seem to be related to leaving orders sitting around 'showing one's hand'.