Stop Loss Order

         Yesterday's market clubbing, as well as recent discussions with a former investment clubber, reminded us of something we used to dwell on years ago, but learned to just swallow.  Maybe our blogger needs to pass it along to subscribers anyway.

         Every time you give your Crime Family a number, the racketeers make money off you.  Tell these crooks you want to buy at 40, and they pick it up for something like 39 7/8 and then, and only then, sell to you at the number you gave them.  Key in an order to sell at 40, and they unload it around maybe 40 1/8 first, then buy yours from you at the price they know they’re getting.  Happens every trade the thieving s#ns#fb$tch3&s do whether they make a counterparty out of you or not.

         Maybe you can already see why placing a conditional sell order on that same stock at maybe 34 to 36 has these goons dancing on your financial grave.  It’s like handing some whacked-out raghead a gun and telling him to shoot you right between the wealth management accounts.

         Market drops 353.87 points, b#st#rds take your stock down big time, pick up your shares at 34 or 36 or whatever price you were dumb enough to give them, and three days later market comes back and a genius mob trader sells out the same lot at, guess what, 40.

         Scam got cranked up yesterday, folks.  Did it happen to you?

         When a stock quote dips, an investor buys more.  An investor invests.  That’s why he’s called an investor.  Anyone who sells out at these times is called a f$ck&ng idiot.

         Don’t use stop loss orders, people.  Think this thing through.  Use covered calls if you have to play silly short-term games.  At least they add cash to the account balance.  Every time too.  Or place your sell orders 10% above the market, not below.

         Most importantly, be wary if your capo recommends buying a specific stock and touts a stop loss order as the only way to execute this brilliant trade.  Chances are, his consigliere has every customer's man in the Family pitching this deal so the trading desk can make a killing off the huge stop-loss block they're busy amassing.  The Organization actually pays their liars an extra commission to set up these kinds of deals, and if your con artist talks long and hard, and just won't let go, that's why.  He'll pick up a big fat paycheck for screwing his clients.

         The stop loss order is offered up as protection, and it’s the same kind of protection gangbangers give shop owners on the streets.  Wall Street’s protection rackets wouldn’t exist without it.