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

To: Tai Jin who wrote (3621)	9/6/1999 3:45:00 AM
From: bajasurf	Read Replies (1) \| Respond to of 18137

Looking at the 5 min charts for IIJI stoK was above 80 from 54 to 65. I don't see any signals on DMI for that time period. Begging the question, how long would you let it run if you entered your first short at 59 and further, if it was near closing time and you had entered four trades up to 65 and it was still going up, would you close at the bell or carry overnight?

To: Tai Jin who wrote (3621)	9/6/1999 9:13:00 AM
From: TraderAlan	Read Replies (3) \| Respond to of 18137

Tai, <I started shorting at 59 1/2 with a 25% position. Then I continued to short 25% positions at 60, 61 3/4, and 64. I wanted to short more at 64+ but I waited too long> Perhaps for position shorting being in a 5 pt loss position is OK. But for the purposes of this thread, you're dooming those who try this to a very short trading career as it lacks any aspects of risk management for a day trader. <I understand the difficulty in shorting when the stock is coming down> It isn't difficult at all to short a stock after a big run up, just because it's started to roll over. Inventories are jammed with long positions. Alan

To: Tai Jin who wrote (3621)	9/6/1999 11:01:00 AM
From: Dave O.	Respond to of 18137

< I understand the difficulty in shorting when the stock is coming down, that's why I tend to short when it's still going up.> My sentiments exactly. Waiting until everyone else is either selling or trying to short is a lot tougher to get your trade off. I have my entry price set ahead of time. If it blows through it still moving up I monitor it closely until volume begins to taper a bit while it's still moving. Dave

To: Tai Jin who wrote (3621)	9/7/1999 1:21:00 AM
From: Bilow	Respond to of 18137

Hi Tai Jin; Looks like you got a lot of flack for scaling into your positions... Guess I'll have to come to your defense. (This is in regard to continuing to short into a stock that is going up - shorting more as the stock rises.) I believe the real question is "could it be a part of a valid trading plan to intend to take a larger position as a stock continues to move against you?" I think it could be a part of a reasonable trading strategy, but only if it were carried out with correct risk management. It feels, though, like a technique for getting into a position on a fundamental trade, rather than a TA trade. You have to realize in advance that the stock is likely to continue to go against you, and you will have to have some sort of a stop loss at some price. But you would have to involve such a small number of shares that you do not have more than the usual 1 or 2% of your equity lost at that stop loss price. I believe this could be done. -- Carl

To: Tai Jin who wrote (3621)	9/12/1999 5:36:00 AM
From: Bilow	Read Replies (3) \| Respond to of 18137

Hi Tai Jin; Re shorting something still going up. Your post caught a lot of responses from people who felt that no trader would add to a losing position, and that this would be contrary to good trading practice. In defense of your technique, here is an example of one of SI's greatest gurus, Zeev Hed, suggesting the same thing. The post is in regard to shorting MU, by the way, for fundamental reasons: tippet: I think somewhere between 110 and 115 -- I agree completely. It will be a wonderful short/put oppty anywhere above 110 ... ( #reply-11223636 ) Zeev Hed: Tippet, your estimate is as good as any. I would start a little at $95 and in earnest at $105 ( #reply-11223951 ) There is no doubt in my mind that Zeev is truly a phenomenally good trader. The guy is amazing for long term moves, particularly. He bases his trades on combinations of fundamental and technical analysis, and I would suggest that anyone wishing to learn more about the stock market, peoplemark him. -- Carl