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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: John NY who wrote (73127)	11/23/1999 10:34:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

Part time trading strategies, "Uptick" rule and miscellaneous questions... MCKC? I'm not sure if that's the one you mean but if it is, MCKC is not the stock you want to hold long..But MCKC closed at 32 1/2 and could have 'flipped' today with that good range (26 13/16 - 32 7/8) especially for it having closed in 93% of intraday range. I held it two sessions and that is all. A "normal" stock does not have such a large range, but for the volatility there is a price to pay. What we hope to do next year (which is only 6 or 7 weeks away) is have extended education for newer traders and/or part time traders. Very volatile internet stocks are not for part timers, unless they have adequate risk management techniques. I was mentally stopped out of 2 trades today (XMSR and LCOS) just because I didn't like the way the trade was headed.. XMSR cost me 3% and LCOS barely 2% which is practically nothing compared to the gain from the trades I chose to remain in and entered at almost the same time (first 90 minutes of trading).. Those other 5 plays gains were were between 4-13% gain. And that was the first time I had 2 trades go sour in last few sessions instead of usually 1 at most. But I am guilty of watching the screen, spending most of the trading session 'nursing' the trades, putting in alerts prodigiously, charting intently and even using the phone if I have to to check up some buy stops or buy limits. If I had only a few hours I'm not sure how I'd do but I'd make sure 'risk management techniques' and hit 'n run trading was the priority of my strategy. I have subscribers who buy up to 5,000 shares and are out within 30 minutes and are doctors, attorneys, professors, taxi cab drivers, 2 surgeons that I know about and one state congressman. What they have in common is just a knowledge of what they have to do to compensate for the lack of hours they can devote to trading... Hopefully that issue will be a 'downloadable' streaming video tape that you can see for yourself when we've gotten our 'education' site revamped. There is not all that much between actually succeeding to failing at trading. I have seen how traders a) ignore intraday updates b) don't read the newsletter c) forget to put in stops but when they change around some habits, they improve their results quite dramatically. I have been improving my own strategies just simply by turning over my long positions to short positions and vice versa much more consistently. I've not gone long ASKJ but did go short 3 times in one week when the stock looked like it might be in 'rally' mode. The "uptick" rule is much easier to follow in a stock that is just beginning to turn sour (like PHCM) than one that is in the throes of tanking. That is why special strategies are being prepared for shorting stocks that spike up unusually high rather than trying unsuccessfully to short a stock that has already gapped down or just doesn't present an 'uptick'.. In fact it is going so well that a common criteria to these 'very shortable' stocks is actually the paradox that they are high flyers and in long term uptrends. That is why when you capture 5 or 10 points in a short you 'know' you might have to go flat but your better strategy would actually be to go long (i.e. PHCM, LCOS (which I didn't but should have), PPRO, VERT etc.).. I've also noticed that some traders think if a stock like AGIL drops 5 or 6 points or just seems about to rebound they try to 'call a bottom' then the stock actually moves down another 4 or 5 points. That will be prevented by just putting in buy limits at pivot points where you think AGIL will be hitting a 20 period MA or MA crossover, or ADX is about to rise.. If you are wrong then you won't be filled. So you might miss a few points but you will be caught into an uptrend rather than washed down the drain when the bottom turns out to be a false bottom. Of course you sometimes err like I did with VRTS going short at the wrong time but then you are out 2 points and try again.. knowing perhaps VRTS is like AMCC and SEBL just too strong to short and you make an adjustment. You can eventually short the same stocks over and over as you become accustomed to their historical trading patterns.