Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Eric P who wrote (5120)	11/2/1999 1:35:00 PM
From: Leland Charon	Read Replies (3) \| Respond to of 18137

Eric, That was one heck of a set-up on WHIT. I made one of the dumbest trades of my career this morning. I went long MOT at 103 (early) and gave it a rather large wiggle for myself. I sold the low of the day at 101 15/16 and the stock is now approaching 105. I should have been more patient and let the stock pattern up a little more. MOT brokeout yesterday and that is what attracted me to the play. I never entered the stock therefore I missed the entire that I was going after in the first place. This was pretty costly as I traded 1000 shares of MOT. Just had to vent, Leland

To: Eric P who wrote (5120)	11/2/1999 4:17:00 PM
From: OZ	Read Replies (1) \| Respond to of 18137

Eric and Leland, I raised my startup daytrading capital up 20% in 5 days by making one adjustment to my methods. The one change is buying intraday highs and stopping at intraday lows. This is applied to setups on my daily charts. This one change would have kept you both in the trade. The problem with buying at the 52 week high or at a previous day high is that you can get turtle souped and your stop loss (both the intraday low or the previous day low) is to far away. By entering on intraday highs, your risk reward is dramatically improved. You can even increment into your position if you commission schedule allows it. This one change has literally opened the money vault for me. Try it. OZ

To: Eric P who wrote (5120)	11/2/1999 5:58:00 PM
From: Mark Davis	Respond to of 18137

Since we are sharing today, here's my 1.5 cents. RE: Getting shaken out of a good position because it doesn't do what you wanted, when you wanted it to. The problem is one of risk management. You have to have rules to live by, and they have to be followed or else you are at great risk. So, when a position fails to carry higher immediately after your buy, and threatens to go lower, you sell. That in itself is not the problem. The real issue is what do you do after the shake, when the stock resumes its merry way??? Most folks will have difficulty getting back in. For obvious reasons (once burned, etc.). This, I have found is a costly mistake. So here's the rule. Selling prematurely is no crime, NOT BUYING BACK IN is what costs you the money. Holds true even when you sell a winner too soon into its run. Mastery of the buyback can mean a big difference to the bottom line. P.S. I make no claim to any such mastery. But I do know that the reason many traders don't reestablish a former position has little to do with their take on where it is going. Its a psych thing, and therefore will not produce financially optimum results.