Entry & Exits for Daytrader's
of the NQ Service
By Ralph Russell
This page as dictated by Ralph Russell describes his methods for Entry
and Exits in the Nasdaq 100 Real-time Signals Service.
The entry method I normally use is a stop order. It is not a stop limit
order but you are welcome to try stop limit orders, if your broker accepts
them. I also use limit orders on occasion. This type order is self explanatory.
If you "jump" the order knowing what I am thinking more power to you in
your endeavor and I congratulate you for your aggressiveness!
The exits are the problem it seems. My friend says how do I expect him
to get out on a,
"Buy 2 at 2648 +/- 3 order"
such as I used this day (January 22, 2001) on a pair of shorts from 2667.5.
In my mind this is what this order means. I want to get out somewhere
within that range. I had numbers at 2648 and 2646 at the time. I want
you out with your profits.
If you hit the "Buy at the Market" button when you see 2651 tic
you will probably be filled at 2656, which is not what I have in mind.
This is my suggestion: Type an order to buy the actual number.
If you are aware that there is a number at 2648 and another at 2646 then
type up an order to
"Buy two at 2647 Limit"
and send it when you see 2648 trade.
What do we do if we come down and make 2651 and go up, then we come down
and make 2651 again? This is a problem. You must change your order to
buy 2652 from 2647 or go to the market and buy. You may be slipped upward
or even downward.
If you do this and you see in the record that I waited for the number
five minutes later, all I can say is perhaps I got lucky, perhaps my experience
in screen watching has helped me, or something else. I cannot possibly
tell you where you will get out with certainty but when I send an area
to use I do not expect you to turn the trade into a loser no matter what
Then there is the matter of the even trade. Today (Jan 22, 2001) I said
a couple times to Bail Out at even or better. In a couple cases I even
said, "Bail Out at a price like 2660 or so."
What does this type suggestion mean? It means the same as the profit
taking order. I want out of the market and I think I can wash the trade,
or I may think I can make a few points on it.
What happens when the market ticks exactly where I called to get out?
Some of you may be lucky enough to get out, and many of you probably not.
Then I typically send a notice that, if you did not get out, you should
be out. What is meant by this? It means the same thing - I want you
out of the market.
If we tick at the price and you do not have a fill within your normal
time to get a response and the software shows your order still working
- you need to get out.
Do not let these trades run against you by large amounts. It is difficult
to tell just exactly how to get out of each one. I can give you a range
or I can give you an exact price but I think the range works well.
If you have any suggestions on how to improve our exits, please contact
We are always interested in improving this service.
Copyright Ralph Russell 2001