Limit Order vs. Stop Order: What's the Difference? | My 20 minutes study | Gray stock position case study

 July 4, 2021

Introduction

I have some issues to manage risk to invest $10,000 dollars on GRAY stock. It is very risky stock and the price can drop easily 10%. I like the challenge, but I have to learn more how to avoid big losses. 

Limit Order vs. Stop Order: What's the Difference?

Limit Orders vs. Stop Orders: An Overview

Different types of orders allow you to be more specific about how you'd like your broker to fill your trades. When you place a limit order or stop order, you tell your broker you don't want the market price (the current price at which a stock is trading); instead, you want your order to be executed once the stock price matches a price that you specify.

There are two primary differences between limit and stop orders. The first is that a limit order uses a price to designate the least acceptable amount for the transaction to take place, while a stop uses a price to merely trigger an actual order once the specified price has been traded. The second is that a limit order can be seen by the market; a stop order can't until it is triggered.

For example, if you want to buy an $80 stock at $79 per share, then your limit order can be seen by the market and filled when sellers are willing to meet that price. A stop order will not be seen by the market and will only be triggered once the stop price has been met or exceeded.

In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered. Thus, a stop-limit order will require both a stop price and a limit price, which may or may not be the same.

KEY TAKEAWAYS

• A limit order is visible to the market and instructs your broker to fill your buy or sell order at a specific price or better.
• A stop order isn't visible to the market and will activate a market order once a stop price has been met.
• A stop order avoids the risks of no fills or partial fills, but because it is a market order, you may have your order filled at a price much worse than what you were expecting.

Limit Orders

A limit order is an order to buy or sell a stock for a specific price.1 For example, if you wanted to purchase shares of a $100 stock at $100 or less, you can set a limit order that won't be filled unless the price you specified becomes available. However, you cannot set a plain limit order to buy a stock above the market price because a better price is already available.

Similarly, you can set a limit order to sell a stock once a specific price is available. Imagine that you own stock worth $75 per share and you want to sell if the price gets to $80 per share. A limit order can be set at $80 that will only be filled at that price or better. You cannot set a limit order to sell below the current market price because there are better prices available.

 

In order to trigger a stop order only when a valid quoted price in the market has been met, brokers add the term "stop on quote" to their order types.

Stop Orders

Stop orders come in a few different variations, but they are all effectively conditional based on a price that is not yet available in the market when the order is originally placed. Once the future price is available, a stop order will be triggered, but depending on its type, the broker will execute them differently.1

Many brokers now add the term "stop on quote" to their order types to make it clear that the stop order will only be triggered once a valid quoted price in the market has been met. For example, if you set a stop order with a stop price of $100, it will be triggered only if a valid quote at $100 or better is met.

A normal stop order will turn into a traditional market order once your stop price is met or exceeded. A stop order can be set as an entry order as well. If you wanted to open a position once the price of a stock is rising, a stop market order could be set above the current market price, which turns into a regular market order once your stop price has been met.2

 

In order to trigger a stop order only when a valid quoted price in the market has been met, brokers add the term "stop on quote" to their order types.

Stop-Limit Orders

A stop-limit order consists of two prices: a stop price and a limit price. This order type can be used to activate a limit order to buy or sell a security once a specific stop price has been met.1 For example, imagine you purchase shares at $100 and expect the stock to rise. You could place a stop-limit order to sell the shares if your forecast was wrong.

$90 stop price | $90.50 the limit price | what if $89 per share < $90 stop price | What condition to activate the order | Confusing for beginner 

If you set the stop price at $90 and the limit price at $90.50, the order will be activated if the stock trades at $90 or worse. However, a limit order will be filled only if the limit price you selected is available in the market. If the stock drops overnight to $89 per share, that is below your stop price so that the order will be activated, but it will not be filled immediately because there are no buyers at your limit price of $90.50 per share. The stop price and the limit price can be the same in this order scenario.

Risks | no fills or partial fills | Stop-limit order | My study - 1:23 AM

A stop-limit order has two primary risks: no fills or partial fills. It is possible for your stop price to be triggered and your limit price to remain unavailable. If you used a stop-limit order as a stop loss to exit a long position once the stock started to drop, it might not close your trade.

Even if the limit price is available after a stop price has been triggered, your entire order may not be executed if there wasn't enough liquidity at that price. For example, if you wanted to sell 500 shares at a limit price of $75, but only 300 were filled, then you may suffer further losses on the remaining 200 shares.

A stop order avoids the risks of no fills or partial fills, but because it is a market order, you may have your order filled at a price much worse than what you were expecting. For example, imagine that you have set a stop order at $70 on a stock that you bought for $75 per share.

The company reports earnings after the market closes and opens the next day at $60 per share after disappointing investors. Your order will be activated, and you could be out of the trade at $60, far below your stop price of $70.

Case study | Gray stock | My loss over $1200 dollars in two days | Apply stop limit order

My goal is to learn how to manage the position with minimum time. I like to avoid loss over $1200 dollars in less than two days. What should I do? The stock went down last two business days so quickly. 

Total loss from June 30 to July 4 is $1248.27. I should learn something here. 

#stockHomeWork #JimCramer #CNBCInvestingClub #StopLoss #StopLimit #RiskManagment #2021 #Investing 

The Stop-Loss Order—Make Sure You Use It | My 20 minutes study

July 2, 2021

Introduction

I like to work on research how to stop loss, since I work on Gray stock investment. The loss was $5000 dollars with capital $10,000 dollars. I like to learn importance of stop loss, and how to save time and also I can have more chance to learn and grow the asset. 

First article | Investopedia | 20 minutes study

Here is the link. 

With so many things to consider when deciding whether or not to buy a stock, it's easy to omit some important considerations. The stop-loss order may be one of those factors. When used appropriately, a stop-loss order can make a world of a difference. And just about everybody can benefit from this tool.

TABLE OF CONTENTS

• What Is a Stop-Loss Order?
• Advantages of Stop-Loss Orders
• Stop-Loss Orders Are Also a Way to Lock In Profits
• Disadvantages of Stop-Loss Orders
• The Bottom Line

With so many things to consider when deciding whether or not to buy a stock, it's easy to omit some important considerations. The stop-loss order may be one of those factors. When used appropriately, a stop-loss order can make a world of a difference. And just about everybody can benefit from this tool.

KEY TAKEAWAYS

• Most investors can benefit from implementing a stop-loss order.
• A stop-loss is designed to limit an investor's loss on a security position that makes an unfavorable move.
• One key advantage of using a stop-loss order is you don't need to monitor your holdings daily.
• A disadvantage is that a short-term price fluctuation could activate the stop and trigger an unnecessary sale.

What Is a Stop-Loss Order?

A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. Suppose you just purchased Microsoft (MSFT) at $20 per share. Right after buying the stock, you enter a stop-loss order for $18. If the stock falls below $18, your shares will then be sold at the prevailing market price.

Stop-limit orders are similar to stop-loss orders. However, as their name states, there is a limit on the price at which they will execute. There are then two prices specified in a stop-limit order: the stop price, which will convert the order to a sell order, and the limit price. Instead of the order becoming a market order to sell, the sell order becomes a limit order that will only execute at the limit price (or better).

limit price or better vs market order?

Advantages of the Stop-Loss Order

The most important benefit of a stop-loss order is that it costs nothing to implement. Your regular commission is charged only once the stop-loss price has been reached and the stock must be sold. One way to think of a stop-loss order is as a free insurance policy.

Be free from any emotional influences

An additional benefit of a stop-loss order is that it allows decision-making to be free from any emotional influences. People tend to "fall in love" with stocks. For example, they may maintain the false belief that if they give a stock another chance, it will come around. In actuality, this delay may only cause losses to mount.

value investor | active trader | active trader | buy-and-hold investor | hardcore?

No matter what type of investor you are, you should be able to easily identify why you own a stock. A value investor's criteria will be different from the criteria of a growth investor, which will be different from the criteria of an active trader. No matter what the strategy is, the strategy will only work if you stick to the strategy. So, if you are a hardcore buy-and-hold investor, your stop-loss orders are next to useless.

At the end of the day, if you are going to be a successful investor, you have to be confident in your strategy. This means carrying through with your plan. The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion.

Finally, it's important to realize that stop-loss orders do not guarantee you'll make money in the stock market; you still have to make intelligent investment decisions. If you don't, you'll lose just as much money as you would without a stop-loss (only at a much slower rate).

Stop-Loss Orders Are Also a Way to Lock In Profits

Stop-loss orders are traditionally thought of as a way to prevent losses. However, another use of this tool is to lock in profits. In this case, sometimes stop-loss orders are referred to as a "trailing stop." Here, the stop-loss order is set at a percentage level below the current market price (not the price at which you bought it). The price of the stop-loss adjusts as the stock price fluctuates. It's important to keep in mind that if a stock goes up, you have an unrealized gain; you don't have the cash in hand until you sell. Using a trailing stop allows you to let profits run, while, at the same time, guaranteeing at least some realized capital gain.

Continuing with our Microsoft example from above, suppose you set a trailing stop order for 10% below the current price, and the stock skyrockets to $30 within a month. Your trailing-stop order would then lock in at $27 per share ($30 - (10% x $30) = $27). Because this is the worst price you would receive, even if the stock takes an unexpected dip, you won't be in the red. Of course, keep in mind the stop-loss order is still a market order—it simply stays dormant and is activated only when the trigger price is reached. So, the price your sale actually trades at may be slightly different than the specified trigger price.

Disadvantages of Stop-Loss Orders

One advantage of a stop-loss order is you don't have to monitor how a stock is performing daily. This convenience is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period.

The main disadvantage is that a short-term fluctuation in a stock's price could activate the stop price. The key is picking a stop-loss percentage that allows a stock to fluctuate day-to-day, while also preventing as much downside risk as possible. Setting a 5% stop-loss order on a stock that has a history of fluctuating 10% or more in a week may not be the best strategy. You'll most likely just lose money on the commission generated from the execution of your stop-loss order.

There are no hard-and-fast rules for the level at which stops should be placed; it totally depends on your individual investing style. An active trader might use a 5% level, while a long-term investor might choose 15% or more.

Another thing to keep in mind is that, once you reach your stop price, your stop order becomes a market order. So, the price at which you sell may be much different from the stop price. This fact is especially true in a fast-moving market where stock prices can change rapidly. Another restriction with the stop-loss order is that many brokers do not allow you to place a stop order on certain securities like OTC Bulletin Board stocks or penny stocks.

Stop-limit orders have further potential risks. These orders can guarantee a price limit, but the trade may not be executed. This can harm investors during a fast market if the stop order triggers, but the limit order does not get filled before the market price blasts through the limit price. If bad news comes out about a company and the limit price is only $1 or $2 below the stop-loss price, then the investor must hold onto the stock for an indeterminate period before the share price rises again. Both types of orders can be entered as either day or good-until-canceled (GTC) orders.

The Bottom Line

A stop-loss order is a simple tool, yet many investors fail to use it effectively. Whether to prevent excessive losses or to lock in profits, nearly all investing styles can benefit from this tool. Think of a stop-loss as an insurance policy: You hope you never have to use it, but it's good to know you have the protection should you need it.

IBM stock: CEO Jim Whitehurst | 20 minutes reading

 July 2, 2021

The news recently broke that Jim Whitehurst is becoming President of IBM. The announcement in late-2018 of the acquisition of Red Hat by industry stalwarts, IBM, for $34 billion turned heads fast. Not least because those familiar with Whitehurst and Open Source knew that with the acquisition, Whitehurst would almost certainly become a notable senior leader or potentially CEO at IBM.

Whitehurst’s career rise is interesting. Formerly a management consultant and then COO of Delta Airlines, Whitehurst joined Red Hat in 2008, throwing himself into an unusual place both in terms of the business and the operating culture of the company. The company has felt his success though, with Red Hat revenue and stock consistently growing throughout his tenure.

His business performance is unquestioned. What is really interesting though is Whitehurst’s secret sauce: his deft understanding of people, their drivers, and how he can weave them together to grow a business.

The Red Hat Backstory

To understand this, we need to understand the backstory of Whitehurst at Red Hat.

Red Hat is one of the most notable successes in the history of open source business. Forged in 1993, Red Hat have not just experienced meteoric growth, but they have become a cultural staple of the open source ecosystem. While many open source brands have struggled over the years as they wrestled to balance building open technology with making a profit, Red Hat have not suffered this fate.

Why? Because the company has retained it’s integrity throughout this period of change, managing to balance their relationship with two very different worlds: the commercial businesses who buy their tech and keep the Red Hat lights on, and the open source contributors and staff who build their tech and have helped fuel the rise of open source.

Understanding the nuance of these audiences can’t be underlined enough. For all intents and purposes, companies like Red Hat are weird.

Their staff, many of whom have been there for many years, have developed a very, very distinct set of cultural norms. Strongly-held views on software licensing, platforms and tools used for building technology, communication best practices, privacy considerations, the balance between open projects and products...these are all part of Red Hat’s culture. Many of these views hover in the ether: they are not documented, they are not stated and they are characteristics of the open source tribe. It is not a command and control culture but instead a hierarchy of both roles and respect.

When Whitehurst joined Red Hat in 2008, coming from Delta, many people, myself included were suspicious. How the hell could the COO of an airline understand all this nuance at Red Hat? Many envisioned Whitehurst as the manifestation of classic corporate America and Red Hat as the antithesis of that. “This is going to go down in flames”, many uttered from the sidelines.

A Focus On Collaborative Culture

It didn’t go down in flames. Quite the opposite.

Whitehurst came into the company and started to listen. He worked to understand the culture, the driving forces and intentionally received counsel at all layers of the organization.

As he started to deliver his leadership, it resonated carefully across Red Hat and beyond. I know hundreds of people at Red Hat and almost everyone I met couldn’t sing higher praises of him. His leadership was not perceived as fake or condescending which other leaders who have been accused of when they over-index on the collaboration message. Whitehurst was seen as genuine and focused on harnessing what made Red Hat different: their culture.

I first met Jim back back in 2015 when I flew out to their HQ in Raleigh for some meetings about opensource.com. We met and then had a few follow-on calls where I gathered material for another Forbes piece (that also included content from Scott Guthrie from Microsoft.)

I saw what the Red Hat people saw. It is difficult to capture what was unique about Whitehurst but it is the same patterns I have seen in other phenomenal leaders. He is a genuine listener, clear in his focus and vision, collaborative in his demeanor and always focused on enabling the success of his colleagues.

Whitehurst’s philosophy was illustrated perfectly by something he shared with me for my new book, ‘People Powered: How communities can supercharge your business, brand, and teams’:

“Our innovative technologies are an output of our organizational culture—our people—who give us the ability to adapt and rebound in the wake of disruptive change. Red Hat contributes to dozens of open-source communities in areas where we don’t have commercial products. We do this because these are areas important to the open-source communities in which we are active, and the work needs to be done. We understand that there is value in contributing whether or not there is a direct quid pro quo. It’s part of what’s made us successful.”

Whitehurst was clearly able to connect together products, technology and Red Hat culture into one unified machine. This paved the way for Red Hat’s success.

What This Means For IBM

IBM is the perfect place for Whitehurst to be, especially now.

In recent years, IBM has struggled as a brand. Gone are the days of, “No-one gets fired for buying IBM”. They have struggled to stay relevant and shake off their reputation as a technology firm that is old, dated, and dusty.

This reputation is not because of their technology. IBM has consistently built amazing tech, and their work on Watson (especially in AI), IBM Q, IBM Cloud and others are illustrative of this. Where they have struggled is with relevance, especially outside of behemoth multi-national enterprises. Internally, parts of IBM have also become dated and developed a bit of a reputation as staffed by neck-bearded IBM lifers.

Whitehurst is perfectly positioned to help shift this future and culture at IBM. His clear understanding of the technology and enterprise market and product value is one thing, but being able to engineer the cultural revolution that Red Hat has experienced will be his ticket and ultimately his swan song.

Now, this will be hard work, and will test Whitehurst to his limits, but he has the blueprint and experience. IBM has the talent, the tech, and the Red Hat brand. This is a game that is theirs to lose if they don’t get this right.

As someone said to me privately, “IBM didn’t buy Red Hat, Red Hat bought IBM”. If Whitehurst and colleagues can do this well, it could transform the future of one of tech’s oldest and most well-known firms.

Jono Bacon is the author of ‘People Powered: How communities can supercharge your business, brand and teams’, published by HarperCollins and now available.

 

AI update | Yoshua Bengio、Yann LeCun 和Geoffrey Hinton

July 2, 2021

Here is the article. 

【新智元导读】2018图灵奖获得者Yoshua Bengio, Yann LeCun和Geoffrey Hinton再次受ACM邀请共聚一堂，共同回顾了深度学习的基本概念和一些突破性成果，讲述了深度学习的起源、发展及未来的发展面临的挑战。

2018年，ACM（国际计算机学会）决定将计算机领域的最高奖项图灵奖颁给Yoshua Bengio、Yann LeCun 和 Geoffrey Hinton，以表彰他们在计算机深度学习领域的贡献。

这也是图灵奖第三次同时颁给三位获奖者。

 

用于计算机深度学习的人工神经网络在上世纪80年代就已经被提出，但是在当时科研界由于其缺乏理论支撑，且计算力算力有限，导致其一直没有得到相应的重视。

是这三巨头一直在坚持使用深度学习的方法，并在相关领域进行了深入研究。通过实验发现了许多惊人的成果，并为证明深度神经网络的实际优势做出了贡献。

所以说他们是深度学习之父毫不夸张。

 

在AI界，当Yoshua Bengio、Yann LeCun 和 Geoffrey Hinton 这三位大神同时出场的时候，一定会有什么大事发生。

 

最近，深度学习三巨头受ACM通讯杂志之邀，共同针对深度学习的话题进行了一次深度专访，提纲挈领地回顾了深度学习的基本概念、最新的进展，以及未来的挑战。

 

广大的AI开发者们，看了高人指点之后是不是对于未来之路更加明晰了？下面我们来看看他们都聊了些什么。

深度学习的兴起

 

在2000年代早期，深度学习引入的一些元素，让更深层的网络的训练变得更加容易，也因此重新激发了神经网络的研究。 

GPU和大型数据集的可用性是深度学习的关键因素，也得到了具有自动区分功能、开源、灵活的软件平台（如Theano、Torch、Caffe、TensorFlow等）的增强作用。训练复杂的深度网络、重新使用最新模型及其构建块也变得更加容易。而更多层网络的组合允许更复杂的非线性，在感知任务中取得了意料之外的结果。

GPU和大型数据集的可用性是深度学习的关键因素，也得到了具有自动区分功能、开源、灵活的软件平台（如Theano、Torch、Caffe、TensorFlow等）的增强作用。训练复杂的深度网络、重新使用最新模型及其构建块也变得更加容易。而更多层网络的组合允许更复杂的非线性，在感知任务中取得了意料之外的结果。

深度学习深在哪里？有人认为，更深层次的神经网络可能更加强大，而这种想法在现代深度学习技术出现之前就有了。但是，这样的想法其实是由架构和训练程序的不断进步而得来的，并带来了与深度学习兴起相关的显著进步。 

更深层的网络能够更好地概括「输入-输出关系类型」，而这不仅只是因为参数变多了。深度网络通常比具有相同参数数量的浅层网络具有更好的泛化能力。例如，时下流行的计算机视觉卷积网络架构类别是ResNet系列，其中最常见的是ResNet-50，有50层。

深度网络之所以能够脱颖而出，是因为它利用了一种特定形式的组合性，其中一层的特征以多种不同的方式组合，这样在下一层就能够创建更多的抽象特征。 

无监督的预训练。当标记训练示例的数量较小，执行任务所需的神经网络的复杂性也较小时，能够使用一些其他信息源来创建特征检测器层，再对这些具有有限标签的特征检测器进行微调。在迁移学习中，信息源是另一种监督学习任务，具有大量标签。但是也可以通过堆叠自动编码器来创建多层特征检测器，无需使用任何标签。

线性整流单元的成功之谜。早期，深度网络的成功，是因为使用了逻辑sigmoid非线性函数或与之密切相关的双曲正切函数，对隐藏层进行无监督的预训练。

 

长期以来，神经科学一直假设线性整流单元，并且已经在 RBM 和卷积神经网络的某些变体中使用。让人意想不到的是，人们惊喜地发现，非线性整流通过反向传播和随机梯度下降，让训练深度网络变得更加便捷，无需进行逐层预训练。这是深度学习优于以往对象识别方法的技术进步之一。 

语音和物体识别方面的突破。声学模型将声波转换为音素片段的概率分布。Robinson、Morgan 等人分别使用了晶片机和DSP芯片，他们的尝试均表明，如果有足够的处理能力，神经网络可以与最先进的声学建模技术相媲美。

2009年，两位研究生使用 NVIDIA GPU ，证明了预训练的深度神经网络在 TIMIT 数据集上的表现略优于 SOTA。这一结果重新激起了神经网络中几个主要语音识别小组的兴趣。2010 年，在不需要依赖说话者训练的情况下，基本一致的深度网络能在大量词汇语音识别方面击败了 SOTA 。2012 年，谷歌显着改善了 Android 上的语音搜索。这是深度学习颠覆性力量的早期证明。 

大约在同一时间，深度学习在 2012 年 ImageNet 竞赛中取得了戏剧性的胜利，在识别自然图像中的一千种不同类别的物体时，其错误率几乎减半。这场胜利的关键在于，李飞飞及其合作者为训练集收集了超过一百万张带标签的图像，以及Alex Krizhevsky 对多个 GPU 的高效使用.

深度卷积神经网络具有新颖性，例如，ReLU能加快学习，dropout能防止过度拟合，但它基本上只是一种前馈卷积神经网络，Yann LeCun 和合作者多年来一直都在研究。 

计算机视觉社区对这一突破的反应令人钦佩。证明卷积神经网络优越性的证据无可争议，社区很快就放弃了以前的手工设计方法，转而使用深度学习。

Gray stock: floating shares | Shares owned by Institutions | My position | My TFSA account

July 2, 2021

Introduction

It is so challenge to work on my Questrade.com TFSA account, after more than 24 months, I just broke even on my $64,000 dollars tax-free account. I have to learn so many things in order to learn how to make profit. I chose to get back in Gray stock and made purchase two days ago, and I like to learn how Graybug vision stock works and then I can learn lessons through my own experience. It is a very risky stock but I like to learn, since it is best for a beginner to learn how to deal with emotions, market volatility and have opportunities to make good decisions. 

My position | Shares outstanding 

Autocomplete | C# | Trie | My project summary | From June 25 to July 1, 2021

 July 1, 2021

Introduction

It is such exciting project to work on. I like to learn how to write my own Trie and then experience challenges how to scale the data with million rows of domains. 

Warmup | Auto complete

I spent time to read the project related to autocomplete using Google search, and I found out two good examples; After hands on experience, I decided to go for one of them. 

1. How to Implement Autocomplete textbox in ASP.NET WITHOUT using Webservice & AJAX autocomplete extender. Here is the link;
2. Download source from the above link;
3. Tried and then I decided not to use the source code; 
4. AutoCompleteExtender in ASP.NET, here is the link;
5. Download source code, and I tried and it works. So I decided to use AutoCompleteExtender;
6. Here is the blog to document my learning exeperience;
7. Worked on C# Trie, started from Leetcode discussion post I had and then I worked on .csv file import, and then tested the code to compare the result using Excel -> table -> Filter -> startsWith;
8. C# source code is here;
9. Next step is to work on C#, ASP.NET web form application. 
10. The biggest challenge is to deal with out-of-memory issue. I tried to look up Google, stackoverflow.com, and also looked up a few ASP.NET programming books, but I could not figure out how to solve the issue; 
11. I did spend time to learn web.config how to set maximum size for Response; 
12. I did come cross a few issues how to work with prefix and then display results accordingly.