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Author: berkmberk1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36686  
Subject: Stops, stops, stop it!!!!!! Date: 6/28/2001 10:26 PM
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Ok.....I am totally, but hopefully not irreversibly confused.....I have not used stops before, restricting my trading to limits and a few market orders......

I've read the posts on stops......I've read the glossaries and explanations on various sites, and I suppose the only way I'll understand it is if I use an example, and then try it...here goes....tell me whats what......

I bought XRX at 8.80...its finally made a little headway.....my "system" says get out with ~$40-$50 profit, or there-abouts.....my target is 9.60......I know I can put in a limit order for that and hope it will get there......since I am not home during trading except for lunch, around 2-3 est, I figured a stop at 9.60 would have some advantages.....1)if it gets there and drops while I'm gone, I'll probably still be ahead 2)if it hits and goes UP, I'm ahead just a little more 3)if nothing happens before I get home for lunch, I can see whats going on and maybe make an adjustment. Not a perfect setup but workable, I believe.

Now here is my problem....at least I think.....when I access my brokers site I select Sell...Stop...my stock...shares...and stop price (9.60) when I hit place order I get an error message that reads, in part "...stop price must be lower than current bid price..." I don't get it...if I am selling, but don't want to until a specified price is reached, then why oh why am I restricted to setting a selling price that seems to me to be below the current price???? Is this correct or is there some reason my broker would limit transactions this way?

Mike

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