Thursday, May 24, 2007

Warning on Market Orders at EOD


If you look at the chart of EEE above (and I encourage you to CTML), you can see that the price rose rather dramatically (by about 50 cents or 7.7%) from 3:39 p.m. through the EOD.

Now you know that I don't have any advice worth following, but I would urge you to be careful if trying to enter a position during this time. I would also urge you to be crafty--if you want to exit a position and there is some buying interest late in the day, you can use that to your advantage.

I remember one time I had a position in GMR. All of a sudden my position of 300 shares was worth $1,000 per share or $300K. I had that brief moment where I thought that I had died and gone to heaven. Some extraordinary news hat catapulted the stock into the stratosphere!! Investing genius!!!

Well, I'm pretty confident somebody wanted 1,000 shares and fumble-fingered their entry. Within a minute (but what a glorified minute that was) the price was back in the trading range.

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