DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Matthew L. Jones who wrote (3902)	9/13/1999 7:18:00 PM
From: Cormac	Read Replies (1) of 18137

Matt - I daytrade or more accurately am called a scalper... sometimes the thread makes me feel like a distant cousin that nobody wants to talk about...even as a scalper I will not knowingly enter a position if I do not believe that the "potential" is at least 1/2 a point and I will not ever by choice enter a position with less than 300 shares and that very rarely. If I were to use a 1% or 2% criteria for stop losses I would be at a loss...I would be in the market all the time and I am a proponent of being out of the market a good deal of the time...where better to take advantage of my liquidity...I rarely enter multiple positions...2 or 3 is all that I can handle at once. As a general rule I set a stop of 1/8 below best bid at the time of entering...but having said that...that is rarely the case - I treat each stock differently and factor in "whole numbers", time of day, volume, long or short position, depth of market, pace and last but not least my "intuitive" feel for the stock...and having factored all that in I will exit a stock 90% of the time if it stops behaving in the manner that prompted me to enter the trade in the first place. Matt, I know this is not what you were looking for but this is my approach to my daytrading stop losses... I approach my mid-term to long term trading differently...I trade story stocks...stocks that have a story to me, of interest to me based on their "story"...sorry folks not technical in any way...in these trades I set my stops more in line with the 1% rule but I also am willing to lock profit in by selling a partial position and use a trailing stop. I also weed out non-performing stocks as I add new "story" stocks. I also factor in overall market trend, sector dynamics, support and resistance, etc. again treating each stock with some individual bias. Regards Cormac

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