Momentum Daytrading - Tricks of the Trade Message Board

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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade

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To: Ken Wolff who wrote (30)	1/5/1998 11:26:00 PM
From: Ken Wolff	Read Replies (2) of 2120

Rule #1: CLEAR YOUR SPREAD - The only way to know the direction of a stock is when it is being bought so heavily that one is forced into saying, "This stock is going up, I better hurry to get my buy order filled!". When that occurs you will clear your spread most of the time. Clearing your spread would mean buying XYZ at 9 1/4 and have enough buying occuring so as the bid upticks from 9 3/16 to 9 1/4. If you had to sell at this point at 9 1/4 you would get out even with the only cost being your commission. When this happens, you have purchased an opportunity. DO NOT fall into the trap I see all the time of predicting the price a stock will go through. DEAL WITH THE HERE AND NOW and not with the pie in the sky. YOU HAVE SUCCEEDED in your trade when the spread is cleared -- THAT IS YOUR GOAL. The minute the buying stops and the exact opposite begins to occur, I sell ! I don't care what the price is. What you have made is irrelevant, The reason you bought the stock is no longer true when selling starts. Ken mtrader.com

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