Day trading in Canada Message Board

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Gold/Mining/Energy : Day trading in Canada

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To: chris who wrote (885)	10/22/1998 1:31:00 PM
From: keith massey	Read Replies (2) of 4467

Just thought I would pass on a trading technique that I have used in the past and worked great for me today. When a large company drops huge amounts (20% or more) on higher than average volume (300% or more) I start watching. If the company puts out a news release during the trading day that they have no reason for the drop in price and there is lots of buying interest near the end of the day I will buy in and hold overnight for a quick sell in the morning. I always place a stop loss on the buy right away. To sell the next morning I just use the change order feature on Greenline and always sell within the first 10-15 minutes of trading. Reason - I see this type of drop happen at least once a week. I don't care why the sell-off started as long as it is not bad news coming directly from company that will cause the stock to gap down the next morning. The large drop is likely the result of selling for some fundamental reason which cause people to panic sell which results in stop-losses getting triggered and overselling the stock. Normally the stock and story are mentioned that night in the Post and bottom feeders with market buy orders come out early the next morning. I have noticed that after these stocks jump up in the early morning they normally begin a large fall over the next several days. Example - Yesterday JFM dropped from $26 to 19.70 on higher than normal volume. A couple of hours before close the company gave the news release that they had no explaination for the drop. Near the close I saw a jump in buying so I got in at 21.75 3 minutes before close. The stock was mentioned in the Post last night - opened at 22.80, ran to 23.75 in the first 15 minutes and then dropped back down to 21.80 within the next hour of trading. I got out on a market sell in the first 5 minutes of trading. Hope this helps someone out there. Anyone else got any tricks of the trade. Best Regards KEITH

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