An article in Trading Markets reminded of a quick options tip. Make sure your stop, if you don’t know what a stop is you have bigger problems, is set with the volatility of the stock in mind. There is no doubt you want ride the winners and dump the losers but how many times has your stop been taken out only to ride right back up. There is no doubt stock market makers and computers send out 100 lots of stock to trigger set stops. I have seen them drive down a stock on a few thousand shares which set off some stops, which sets off some stops, which set off some stops, etc until eventually people or computers catch the low price and bid it back up. Some people feel they are just getting the price down to fill some big fish’s order at a cheap price but I think that isn’t correct. Make sure your stop doesn’t get taken with it. Ideally you can sit there and watch it and just set a “end of the world” stop for some dramatic event that wouldn’t let you get an order in quick enough. Otherwise set it a bit lower on volatile stock like GOOG and RIMM and keep it tighter on the MSFT and WMT’s. Everyone trades a bit different and some would disagree but this has helped me make it through the little dips and rises throughout the day. I want to get out of a trade because it is not working not because some computer sent out sixty five 100 lots to sell on a low volume day.