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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (309)	6/8/1999 4:25:00 PM
From: TraderAlan	Respond to of 18137

Eric, <One of my rules in trading is... Stay away from Penny Stocks!> One of mine is to stay away from dollar stocks. Usually I won't trade anything under $50-$70/share. The crowd seems to change with every 10 points. Of course, higher priced stocks generally have more institutional participation, which smoothes out some of the noise and whipsaws. Also (again as a general rule), the higher the stock price, the less you're paying for the middleman as a percentage of your total cost. The other consideration is locating higher priced stocks with decent volatility. Just in the last week, I made my first 2 trades this year of "low-priced" issues, PSFT above 17 and LCAV at 8 1/2. Then again, I was trading PSFT back when it fit my high price criteria <g>. Alan

To: Eric P who wrote (309)	6/8/1999 4:27:00 PM
From: Dave O.	Respond to of 18137

< This new rule requires that for all customer orders which improve the market makers inside bid or ask price, the market maker must either fill the order or modify their posted quote to reflect the customer order within 30 seconds of receiving the order. > Eric, I think there's one exception, and it's if a web based broker has an "All or None (AON)" order where the buyer (seller) has selected that option. Then the MM will not improve the bid/ask. I experienced this not long ago in my Discover account, improved the bid and it wasn't reflected, so I went and de-selected the "AON" option and I saw the bid improve and ultimately I was filled. I later confirmed with Discover that a "AON" order will not be reflected. Dave