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Strategies & Market Trends : The picks

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To: steve susko who wrote (2976)	1/25/1997 8:30:00 AM
From: Patrick Slevin	of 6124

OEX entry/exit ...... Various ways to set entry. -Sometimes based on selloff to support/rally to resistance. -Often based on timing. Developing a feel where programs should kick in & which way. -Pattern-following, relying on historical data about similar patterns. (H.L. Camp is a source for this.) Exit is tougher. Many people set price targets, as in I want to get 15.62 for these calls. At one time I was content to get $1K a trade. Now I'm more prone to take twice as many positions and take profits on 1/2 the positions when it's $1K to the good & ride the rest into the reverse scenario to the entry points above. Very often you may see a lot of activity on your call(for instance) on a brief rally. Say the OEX rallied sharply 2 points and your call is trading heavily @ 9. Then the OEX backs off 1 point, and then rallies 1/2 point. Even though the index is lower than where your call was trading @ 9, I would not be surprised to see it trading higher. So knowing true resistance points adds profit. On losing positions I sometimes average down, with a predetermined maximum investment threshold. I then try to work my way out of the trade. Other times I just throw in the towel, get a drink and plan out the next day.

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