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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (26210)	11/11/1999 12:15:00 AM
From: Shadowed	Read Replies (1) \| Respond to of 108040

MUST READ! Great little piece from briefing.com: Trading is not an easy sport/profession, regardless of what the online brokers would have you believe. One of the biggest mistakes new traders make is jumping into hot stocks with no strategy to guide them. They forget the important questions such as: what is a good entry point?... where do I set my stop loss?... when do I exit?... why is the stock going up in the first place? Each day we receive e-mail from readers expressing displeasure that we didn't mention a stock on the In Play page sooner. Our analysts closely track more than five hundred stocks looking for break-outs, unusual trading activity, news, etc... Because many of these stocks carry small floats and trade extremely light volume, a 10%-15% move can occur in a matter of minutes. So what we're trying to say is that sometimes we simply miss the break-out. For those who depend on our service to position them in hot stocks just before they are about to run, we apologize for sometimes disappointing. Because the stock has already made a decent run, doesn't mean that the opportunity is lost. In a momentum driven market, hot stocks tend to stay in motion. On the In Play page, the goal is to keep our readers on top of these names. By mentioning the stock, we are not saying buy it now; rather that this is a stock to keep an eye on. The problem is that many traders, particularly novices, have the attention span of a hyperactive child. If the issue doesn't have upside of 50% over the next hour, they simply don't want to hear about it. While this type of quick-trigger trading style works for some, experienced traders tend to gravitate to the multi-day approach. They may not hold the stocks for several days, rather will keep the issue on their radar screen looking for break-outs or bottoms. In the attached table, we look at some of the stocks mentioned on the In Play page on Monday and Tuesday. The gains posted by these issues over the day or two following their initial move certainly lends credence to the multi-session trading approach. Sure, not all of the stocks mentioned on the page have gone up. But the idea is to find one or two compelling names, and take your shot. With time, it becomes easier to separate the one day winners from the stocks with legs. Company ChangeAtTimeofMention PriceThen PriceNow ChangeSinceMention Be Inc (BEOS) +60% $6 3/32 $17 179% Nextcard (NXCD) +10% $28 $50 79% Net Perceptions (NETP) +15% $20 3/4 $28 3/4 39% SpyGlass (SPYG) +10.5% $23 $31 3/4 38% Microware Systems (MWAR) +24% $2 3/4 $6 54% Proxim (PROX) +5.5% $49 5/8 $59 1/2 20%