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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Kirk © who wrote (19645)10/21/2003 6:59:43 PM
From: Tim Bagwell  Read Replies (1) of 42834
 
Kirk, if you've learned any trading tricks that you don't mind sharing it would be fun to kick those ideas around.

Stocks like UTEK can be especially good on a slow market day. By placing a low ball limit order on a narrowly traded stock you can actually watch the price come down to your level and sit just above your price. You know then that the floor specialist is trying to draw you in. It's a signal that you have a bit of line to work with.

If he goes for it you know the stock is soft and you get your shares. But if he doesn't go for it you know there is potentially some strength there and you've lost nothing. So you ladder in some market orders as the price works its way up and try to draw in other buyers. This is Livermore style trading.

If you know you're working with a solid company that happens to be a small-cap, low volume stock it should not be that risky to play around.
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