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

To: Eric P who wrote (854)	6/16/1999 6:19:00 PM
From: Teresa Lo	Respond to of 18137

I trade on the 5M chart for risk and money management parameters suitable for my personality and trading account - and I don't take anything overnight because I'm a big chicken. There we some good trades intraday. Can't really complain, but the market moved up in Globex trading in response to the CPI number and I don't trade on Globex for many reasons, primarily because you can't enter stops at most futures firms. Today's huge-gap-up-higher-due-to-a-catalyst type of day is very hard to trade, and there is no guarantee that it can make it to 1352. So I take what I can get on an intraday basis and it wasn't much today because it wasn't really trending anywhere.

To: Eric P who wrote (854)	6/16/1999 8:05:00 PM
From: Maarten Z	Read Replies (3) \| Respond to of 18137

Eric - excellent thread. Lots of good knowledge. I would be interested to hear from some of the participants what issues they actively trade and what type of mannerisms the issues show. For example I trade AMZN on a daily basis. (others as opportunity presents itself) but I felt that it would advantageous to learn the nuances of a single stock and develop a more intuitive approach as well as TA. I only trade 200 share lots which is comfortable for me. During the trading day I use two intra day charts; 2 min chart for entry/exit points and 5 min chart with envelope bands for determining R/S. I only use Level 2 at the moment of entry/exit. I stick to watching my two charts and T/S as I feel there is too much noise coming from L2. Obviously I am not scalping 1/8s <G> I try for a minimum of 3/4 pt per trade. When I first started it was difficult to achieve on a regular basis however I noticed that most of my losing trades were not due to faulty analysis or terrible entry points it was due more to placing too tight stops. As my goal was 3/4 pt - I used a 3/4 point stop This was way too tight for a volatile stock like AMZN. I then experimented with various stops and settled on 1 1/2. While this does expose me to a greater loss when my entry points are incorrect it has significantly improved the percentage of winning trades especially when timing reversals. I suppose the lesson here is that stops cannot be simply a percentage of the dollar amt of trade - the normal price fluctuation of an issue needs to be factored in. I'm sure this is old news for most of the thread but for me it was a revelation <gg> MaartenZ