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

To: marketbrief.com who wrote (2714)	8/13/1999 10:25:00 AM
From: TheKelster	Read Replies (1) \| Respond to of 18137

Double Ditto ~Smart$ KK PS One of these day's I am going to finish writing some of my start-up stories. Man, there was some tuition paid.

To: marketbrief.com who wrote (2714)	8/13/1999 11:01:00 AM
From: JB2	Read Replies (1) \| Respond to of 18137

I agree, the adrenalin rush of actually owning stock raises the playing field to whole 'nother level. Learning to deal with this "adrenalin factor" is high priority, as is learning to put your ego in your back pocket once you take your money out of your wallet. After my many moons of progressively more serious papertrading, THEN I began taking small positions with real money. But from my reading I gleaned that it was most practical to start with stocks rather than their underlying derivatives. Needed to figure out how the stocks themselves moved before paying much attention to their options. Also have avoided the IPO ("it's probably overpriced") market. Although, I know of someone who dropped a bundle on a couple of Wade Cook weekend seminars, who claims to regret it and says in retrospect it was way overpriced for what it consisted of, yet is doing well this year using a strategy introduced by Cook: writing naked puts! Speaking of options, Time magazine (8-9-99 issue) has a one page sidebar in their "Atlanta Massacre" article, with the heading "Day Trading: It's a Brutal World". The last two sentences say: "Since April, Net stocks have fallen on hard times, revealing many formerly brilliant day traders to be little more than lucky novices. Unfamiliar with strategies like selling short or hedging with options, many have lost big and quit. But the flushing out is far from complete." I would appreciate any feedback anyone has to offer on the subject of hedging with options. Any experiences or techniques worth noting?.. I never made it all the way thru Niederhoffer's "Education of a Speculator" but knowing how he has ended up, I can't believe he didn't hedge his huge sums of capital better. One of the weirder facts about him, I thought, was his weekly habit of taking lessons in how to play checkers---I'm not kidding, it's in his book (!) I contend that if he had studied chess instead, he'd still be in the big time---more advanced strategies may have stood him in better stead...But I'm just speculating <g>

To: marketbrief.com who wrote (2714)	8/13/1999 12:07:00 PM
From: Rick Faurot	Respond to of 18137

I agree there is no substitute for doing tons of executions in order to learn to trade, but I also think papertrading is very valuable for a beginning trader. I can't believe how dumb I was when I first started trading actively! I knew nothing about TA, sector rotation, seasonal changes in the market etc. Having gone through more than a year of full time trading, I am much quicker now to go back to papertrading when I don't see good setups. This kind of patience has given me a much better feeling about my trading. I know I'm in it for the long haul, so why jump into trades that don't look compelling? Rick