This is a sample entry from Tom Dosdall’s email newsletter, Dosdall Daily Edge, published on August 30, 2012.
I expect to see the stock market open lower this morning. This might put some downward pressure on the Cocoa market, which has made fresh 9-month highs the last two trading sessions. For those reasons, and the potential “3 STAR” setup with TAS Tools, I like the downside on a break below 2560 (and a flip to bright red on Navigator).
If filled, consider a stop loss above “city traffic” at 2600.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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