Traders, Defend Against the Dreaded Death Spiral.

Written by Floyd Snyder


Continued from page 1

Onrepparttar other hand some stocks can move $2 or $3 in a heart beat and reverse just as quickly for $2 or $3 move intorepparttar 111876 money for a total of $4-$6 or more. A $.50 stop on these will have you stopped ofrepparttar 111877 trade and out ofrepparttar 111878 money more often then not. I suggest that unless you are familiar with these stocks that have a history of wild swings that you avoid them until you get familiar with them.

The Trading Stop Itself

It isrepparttar 111879 opinion of many experienced traders and one that I share, thatrepparttar 111880 stop order should not actually be placed. Instead you determine what price it should be and be ready to placerepparttar 111881 order if and whenrepparttar 111882 trade turns against you and nears your stop price. This is referred to as "mental stops". You can even go as far as havingrepparttar 111883 order form all filled out and ready to execute asrepparttar 111884 price approaches your stop price. A lot ofrepparttar 111885 newer trading platforms will allow you to actually placerepparttar 111886 order in their system but it is not sent torepparttar 111887 market for execution untilrepparttar 111888 price is reached.

When you actually placerepparttar 111889 order, you lose control of you trade. Many systems do not allow you to have two orders onrepparttar 111890 same position atrepparttar 111891 same time. If you want to sellrepparttar 111892 stock you first have to cancelrepparttar 111893 stop and get confirmation back before you can place another order.

On a stock that is moving rapidly against you some traders prefer to use a market order forrepparttar 111894 quick exit. I do not likerepparttar 111895 use of market orders any under circumstances. There are too many pitfalls involved withrepparttar 111896 use of market orders. Instead I suggest you use a limit price that is significantly lower thenrepparttar 111897 bid that assures you get a fill.

However you chose to exerciserepparttar 111898 use of stop loss orders is up to you but it has to be done. DTM withrepparttar 111899 use of stop orders isrepparttar 111900 only way to defend againstrepparttar 111901 dreaded death spiral.

See more Trading Tips at http://www.TraderAide.com

There are many excellent books on learning to day trade. My favorites are found at http://www.TraderAide.com/books

No permission is needed to reproduce an unedited copy of this article as longrepparttar 111902 About The Author tag is left in tact and hot links included. We do request that we be informed of where it is posted so reciprocal links can be considered. Email floyd@sbmag.org.

Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in late 1990’s as a trader and moderator of one of the Internet’s largest real time trading rooms. He is the owner of http://www.TraderAide.com and Strictly Business Magazine at http://www.sbmag.org. He is currently the Room Moderator at the live trading desk at http:www.daytraders.com


Using Equipment Leasing as a Competitive Weapon

Written by George A. Parker


Continued from page 1

Accelerating Company Growth

Equipment leasing facilitates faster company growth. It allows companies to add infrastructure faster by bringing in equipment earlier and paying over time. In this regard, leasing affords a competitive advantage over companies that wait to purchase equipment outright.

Defending Working Capital

Sophisticated business managers have discovered how to keep pressure off of their companies’ working capital. Compared to outright purchase, equipment leasing has a low impact on working capital. Leasing allows companies to avoid large upfront outlays while spreading equipment acquisition costs over an extended period. Using equipment leasing to manage working capital permits companies to pay bills on time and to operate smoothly. They are then able to gain a competitive advantage over companies that haven’t mastered this technique.

Maximizing Tax Benefits

Sophisticated companies are able to maximize tax benefits by carefully using equipment lease structures. By entering into operating leases and being able to fully deduct lease payments, companies that can’t otherwise use depreciation write-offs can still realize tax benefits. Capital leases allow companies that can use depreciation write-offs to take advantage of this feature. Tax benefits further reducerepparttar cost of acquiring equipment. These benefits can often make equipment leasing a more efficient means of acquiring equipment compared to other methods.

Turbo-Charging Equipment Sales

For companies selling equipment, offering equipment leasing to customers atrepparttar 111875 point of sale can help establish a significant competitive advantage. Convenient equipment financing atrepparttar 111876 point of sale can eliminate a major selling challenge—repparttar 111877 customer’s lack of financing forrepparttar 111878 purchase. Equipment sellers offering leasing give their customers a means of acquiringrepparttar 111879 equipment and realizingrepparttar 111880 full benefits of equipment leasing. This sales-financing strategy represents a clear advantage over sellers who let customers fend for themselves.

Savvy business owners and managers understandrepparttar 111881 benefits of equipment leasing. They also understand how to exploit leasing for competitive advantage. The challenge for them is to optimize leasing to realizerepparttar 111882 biggest gains and to compete more effectively. It is no wonder that equipment leasing inrepparttar 111883 U.S. has grown to over $ 240 billion annually and accounts for more than 30% of equipment acquisitions. Consider equipment leasing when designing your battle plans. Don’t allow your competitors to use leasing against you to winrepparttar 111884 battle in your market.

George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in equipment financing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com.


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