{"id":9447,"date":"2011-01-27T10:43:08","date_gmt":"2011-01-27T15:43:08","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=9447"},"modified":"2021-05-06T15:04:25","modified_gmt":"2021-05-06T19:04:25","slug":"why-i-am-getting-stopped-out-more-part-ii","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/why-i-am-getting-stopped-out-more-part-ii","title":{"rendered":"Why I am Getting Stopped Out More? (Part II)"},"content":{"rendered":"<p>Yesterday we explained a trading algorithim on more desks that may explain why swing traders, retail traders, long-term investors\/traders are <a href=\"http:\/\/www.smbtraining.com\/blog\/why-am-i-getting-stopped-out-more\">getting stopped out more<\/a> on their positions. Today we will explain another part to the\u00a0algorithm\u00a0that eliminates one possible adjustment.<\/p>\n<p>So as we discussed, say we are long at 30 with a stop at 29.84. One way to combat the\u00a0algorithm\u00a0that is dropping out and causing more prices to be touched, triggering your stop, is to buy the dip. When you see an algo drop out trying to get a trader to hit out at a bad price, then bid for the stock at these bad prices. Isn&#8217;t this just an opportunity for all of us to get the stock cheaper? Instead of complaining about the danger of hitting out at worse prices, shouldn&#8217;t we embrace this new opportunity to buy at much better prices?<\/p>\n<p>In a perfect world this would be a nice adjustment. But the problem is you cannot get the stock at this cheaper price. Why? If you bid 29.84 after the algo has dropped out, then immediately the algo steps in front of you. If you bid higher then the algo&#8217;s response, then it bids higher than you. The algo can enter orders faster than you can blink your eye so you cannot win this game of beating them to the bid. The algo allows you to hit out at much worse prices but will beat you to getting these much better prices.<\/p>\n<p>So what do we do? \u00a0I would love to hear your thoughts and will be back soon with Part III to this blog series.<\/p>\n<p>Mike Bellafiore<\/p>\n<p>Author, <em><a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary\/dp\/0470529407\/ref=tmm_hrd_title_0\">One Good Trade<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday we explained a trading algorithim on more desks that may explain why swing traders, retail traders, long-term investors\/traders are getting stopped out more on their positions. Today we will explain another part to the\u00a0algorithm\u00a0that eliminates one possible adjustment. So as we discussed, say we are long at 30 with a stop at 29.84. One way to combat the\u00a0algorithm\u00a0that is &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/why-i-am-getting-stopped-out-more-part-ii\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[1558,4691,333,4674,18,1193,653,1354,1349],"class_list":["post-9447","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-algo","tag-algorithmic-trading","tag-hft","tag-one-good-trade","tag-smb-capital","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why I am Getting Stopped Out More? (Part II) | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/why-i-am-getting-stopped-out-more-part-ii\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why I am Getting Stopped Out More? (Part II) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Yesterday we explained a trading algorithim on more desks that may explain why swing traders, retail traders, long-term investors\/traders are getting stopped out more on their positions. Today we will explain another part to the\u00a0algorithm\u00a0that eliminates one possible adjustment. So as we discussed, say we are long at 30 with a stop at 29.84. One way to combat the\u00a0algorithm\u00a0that is ... 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