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

To: ynot who wrote (2379)	8/5/1999 2:23:00 AM
From: TheKelster	Read Replies (2) \| Respond to of 18137

Stops I don't have figured out yet. At my current level of trading experience I am using the following concept: I hire a stock just like I used to hire employees. I pay good money for them and I expect a job to be done. If I check in on the employee and I find them just sitting around playing cards and wasting my money they get fired on the spot. I hire them to do a job which makes them money and me money. If they are not making money for anyone they are outta here. It's important to understand the 1st day or week on the job is most critical. They are in a probationary period. Even a little slacking off or screwing up can cost them their position immediately. If an employee bites me the 1st day I don't give him a 2nd day. If a stock turns down immediately after I buy it - it's the ax, no questions asked. The size of the stop ranges from 1/8 to 2.00 depending on what play I am looking at. This subject would require a chapter of it's own. Now if they have been around for a while and have a history of good performance I can cut them some slack. If I find them occasionally slacking off and costing me money I watch them a bit closer. If it turns out to be a one time thing or short term problem I ignore it. That way I don't have to start over with a new employee which can be costly to find and train. If they just totally go nuts on me and start costing me on a regular basis then it's end of the line. If I have a stock that has moved into a strong profit position, and the market is going in the same direction, I will let the stock pull back on me quite far provided I do not see anything on the tape that looks wrong for the situation. This part I guess is just pure experience, lots of tape watching. I watch real close once it has pulled back past 60%. I don't want a sudden dive to turn a gain of any magnitude into a loss. Having looked at those stocks you shorted, I would say as long as you don't buy deep in a hole, I would stick with any pull back that did not re-enter the closest previous consolidation range. Provided the direction and tone of the market itself were clearly in my favor. As long as the market is pushing down as strong as it is, if the other two parameters are met I would give the shorts a chance. NOPT is still in its first(top) consolidation range and so is the most dangerous. The others are below their top consolidation range and so have a ceiling for you to work under. The market looks like it could reach a reaction spot by the end of the week. It could find just enough support to rally for 3-5 days just to burn the shorts. Then finding itself without any shorts it would turn tail and run for cover. :-) KK