Whats the best way out of a tanking position?

C

ChaosNSX

Hey all, I have a question about the different strategies and methods for exiting a position that is rapidly going against you.

Currently I use a series of direct plus's with a given delta of sustainable loss.

As I am increasing my size though I am finding I will need to be able to liquidate positons faster.

I have heard conflicting ideas on market orders. One camp says the market order is the way to go cause you get out before the limit orders on the way down. The other camp says if you put in a market order you are going to get screwed on the fill and almost asking for the gap print.

I am also looking into smart order routing, where you market out and the routing technology finds you the best price it can to dump it all at. I have heard this only works well with OTC stocks and does not work well with Listed.

Does anyone have experience exiting out of rapidly declining listed positions using any sort of routing technology?

I am very interested in storys or senarios or just general advice about these situations

Thanks in advance...
 
Quote from ChaosNSX:

As I am increasing my size though I am finding I will need to be able to liquidate positons faster.

I have heard conflicting ideas on market orders. One camp says the market order is the way to go cause you get out before the limit orders on the way down. The other camp says if you put in a market order you are going to get screwed on the fill and almost asking for the gap print.

I am also looking into smart order routing, where you market out and the routing technology finds you the best price it can to dump it all at. I have heard this only works well with OTC stocks and does not work well with Listed.

Does anyone have experience exiting out of rapidly declining listed positions using any sort of routing technology?
More...
Oooo Maaan. This makes me happy I'm trading futures!!! :eek:

Scientist.
 
LOL

I'll eventually switch to futures.. When the equities dry up.

Quote from Scientist:

Oooo Maaan. This makes me happy I'm trading futures!!! :eek:

Scientist.
More...
 
No way. Hold. Hold it dead or rebound. Just keep your faith. And who knows, some day in a bull market, everything will go back where they were and will be higher. That is something for certain, just a matter of time. Just as we know everyone will die, market only goes higher. That is called truth.

:p
 
Quote from ChaosNSX:

Hey all, I have a question about the different strategies and methods for exiting a position that is rapidly going against you.

Currently I use a series of direct plus's with a given delta of sustainable loss.

As I am increasing my size though I am finding I will need to be able to liquidate positons faster.

I have heard conflicting ideas on market orders. One camp says the market order is the way to go cause you get out before the limit orders on the way down. The other camp says if you put in a market order you are going to get screwed on the fill and almost asking for the gap print.

I am also looking into smart order routing, where you market out and the routing technology finds you the best price it can to dump it all at. I have heard this only works well with OTC stocks and does not work well with Listed.

Does anyone have experience exiting out of rapidly declining listed positions using any sort of routing technology?

I am very interested in storys or senarios or just general advice about these situations

Thanks in advance...
More...

dump it you idiot duh
 
Its not a question of whether to dump it, its about whats the best and most effective way..

Read the FU&$#&* question before answering..

Peace


Quote from LongShot:



dump it you idiot duh
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Quote from ChaosNSX:

Hey all, I have a question about the different strategies and methods for exiting a position that is rapidly going against you.
More...

I usually find that crossing the bid on isld by .02-.10c will get me out. If not then I will market out for half of the position and keep trying for the other half on ecn's. Many times the nyse execution ends up better than my ecn sale prices but you just never know.
 
Quote from ChaosNSX:

The other camp says if you put in a market order you are going to get screwed on the fill and almost asking for the gap print.

More...

Unless you're a really large trader you don't really think 'they' will create a gap just because YOU want to get out, do you ?

If I want out NOW, there's only one way, market.
But if I have more time / faith, I'll trade my way out.
 
over the years I have found it is better to shoot first and ask questions later.....at the market to clear the head....what are you gonna do...play "stock market" and pick a price? or pick the worst limit you will accept. once my head is clear.....if it was a bad sale I just reinitiate the trade.
 
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