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Microcap & Penny Stocks : TIGI : Building Innovative Marketing Relationships

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To: Bill Fortune III who wrote (91)	2/1/2000 10:54:00 AM
From: ztect	of 177

(tda-trading analysis) Day Traders vs Short Termers. . Message #38796 on SI from ztect at Feb 1 2000 10:36AM to Suzanne Newsome Suzanne...someone who is short term isn't technically a daytrader. A true daytrader who bought at .77 would be out as soon as his could get a trade executed below .72. The cumulative reactions by the dt's cause the panic. Some of those short termers and longs also panic. The price hits a recognizable bottom which is usually distinguishable when the bid hits an uptick. All the dt's then buy again and that's why there is a bounce. If they get a good enough bounce they can easily make back their losses plus some. Again they are in and out several times during the same day in accordance with how the stock has behaved on a daily basis. That's why the patterns tend to repeat themselves. the gaps and 10:30 sell-offs and 11:30 bounces. The volume tends to be the same shares being churned by dt's. The daytrader will also sell at of near 30% gain for the day. Once that is achieved, the day trader exits his position, that's why on the 30 to 60 % days you sell the 3-3:30 PM sell-off. With strong buying at the end of the day, some may even buy back in if they anticpate a gap to sell into the next day, and the cycle repeats itself. The daytrader doesn't care how high the price goes. He is more concerned with volatility and volume. that's all. he'd actually like to see the stock trade within a recognizable and predictable "range". That's why the .04 to .09 range repeated itslf. If you bought at four and sold at nine those are good gains. More people probably got screwed when they expected this to repeat itself and then the stock price "broke out". Daytrading locations actually teach courses on this dt stuff. Though after a while you can determine for yourself how it works. Now the short termers and momo players are a different story.. These are the ones who figures that an "event" or "news" will propel the stock over a short period of time. They are the ones who buy on the rumor sell and sell on the news types. They are the ones most easily duped becuase they act sometimes like dogs chasing cars. They react to the volume and hysteria buying into the pumping by other short termers selling to them like "zoom" and "dancingman". They haven't done sufficient 'dd' but they also don't want to miss that proverbial train leaving the station. Once their train got delayed though they have a couple choices. Cut their losses and try to catch another train or wait until their delayed train gets going again. The train "switchers" usually get on another train going the wrong direction. Those short termers that wait become transformed into longs sometimes by necessity (though more frequently because they can afford to since they haven't ventured too much). IF they subsequently do their due diligence, and like what they see, they may average down. Many of the switchers, however, are more like crap players letting too much ride hoping they'll roll a seven . Doesn't happen enough. Tsig's short termers were misled by Super Bowl misinfo into a advertising premise antithetical to tsig's b-plan. Others may have been duped by another absurd rumor re: Amzn. Obviously these short termers were very foolish. Thus, my long winded point is again I think your catagorizations are a bit askew. z

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