I'm not a big fan of the stop loss, especially with a lightly traded stock like RVX. That's not to say that they don't have merit, but I think everyone here already knows my views on how the market functions and the handicap that retail investors play with.

Our (sic) friends the MMS, in my opinion they love limit orders and stop losses. The reason is pretty simple.

MMs really don't care about RVX or any other stock, they're not there to go long or short...they just want to make a market in it. They'll buy from sellers and move the shares to buyers...and much like a bookie they'll make their $$$ on the spread, or the juice.

A stop loss order can be a good or a bad thing depending on what's happening behind the scenes, but even with level II we can't see the entire order book, and we don't know the players behind the bids and asks. If there's a big player looking to accumulate RVX, trading at $2.30 or so....and someone puts a stop in at say $2.10...I can absolutely see a MM using the tools at his/her disposal to drop the PPS, scoop those shares up at $2.10 and then flip them over to someone willing to pay $2.30 or maybe even more.

Stop losses make their lives easier, same as they'd much rather retailers use limit orders instead of market orders.

Assume that MMs are flat in RVX...neither long nor short. Then they get hit with a market order for say 5,000 shares at $2.35.....Now, they can pass the order to another MM, but then they risk being labeled an underperformer and they'll be passed by when brokers are looking to fill. Time is $$$, brokerages (even discount ones) want to deal with MMs that will fill their orders fast.

So they fill the order...and are now short 5K shares at $2.35. Obviously they're going to want to buy them back under that price. If someone has a stop loss in on 10K shares at $2.10....you know what I think is going to happen.

That's why (im not so H o) MMs love stop losses and much prefer limit as opposed to market orders. Stop losses and limit orders allow MMs to size up the market, while market sells and market buys hit them like wild cards outta nowhere.

Personally if I'm going to use a stop loss, I use what I call a "notional" stop loss....its in my head and if the PPS hits that price I dump....but I don't give the MMs fair warning.