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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Lachesis Atropos who wrote (66996)10/20/1999 9:12:00 AM
From: j g cordes  Read Replies (1) of 120523
 
Thanks Lachesis, you're absolutely right, I coined the term "chicken trade." It's use became fashionable for a time on SI as a shorthand phrase to declare one's intent in taking a trade. It has nothing to do with being scared or "...chicken regarding today's investments" as the site you posted states.

Simply stated, its a trade of perceived limited risk for a smaller but more consistent return. Thus the "chicken" part refers to one getting a chicken feed profit.. a lower risk trade for a nominal return. It refers to intent and implies there's a short window of opportunity, similar to a scalp.

The black boxes (computer generated micro trades) attempt to do the same thing.. lots of small but consistent trades with minimal or no drawdowns. If it isn't profitable within, if the scenario of opportunity doesn't materialize the trade is canceled. Real time data and much lower trading fees make this style possible... not to be confused with investing.

Jim
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