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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Carl van Rooyen who wrote (84266)	1/3/2000 8:41:00 PM
From: If only I'd held	Read Replies (2) \| Respond to of 90042

Actually, a smaller trader can work themselves up real quick with smaller lots. You know, to many people, 200 bucks a day is good money. So if they can get a point on 200 shares, or even 100 shares, day after day, after day, it will only be a matter of time before they work themselves up to larger lots. And for those that are not very good at trading just yet, or do not have the sufficient tools for the job, smaller lots are your best avenue. It is also easier to pick up or sell a smaller lot. You trade within your means, not above them. If you stay disciplined to take the profits as you have targeted them, rather than getting greedy and holding out for the "big money", you will find that your money will grow at a nice steady pace. Of course, this only works if you are not using the trading profits to live off of. By doing this trading, often times you will come across a stock that you really like. Then you can find your own groove with that stock and work yourself into a nice position in it, or get a feel for how the stock performs under certain circumstances, such as news, earnings, etc... which will be your guideline for knowing when to hold your stock overnight to maximize your gains, or vice-versa. There are of course, some stocks that you just have to own, because you know the stock is trending up, and you never know when the right news will come out to drive the stock 10 points or more. I maintain cash positions in several stocks, and I use my margin for trading. CS is obviously a stock that Tim feels you have to own. But this idea of scoring a point or so a day, is perfect. It's disciplined, and it will work for all if we keep the discipline. The funny thing about percentages is that unless you are investing your whole net worth every day into one stock for a percentage return, it doesn't really matter. Points add up to percentages in the end. So points it is. A good short-seller is after points as well.

To: Carl van Rooyen who wrote (84266)	1/3/2000 9:48:00 PM
From: jas cooper	Read Replies (1) \| Respond to of 90042

When a stock ticks up one point and you are long 1000 shares, you have a $1000.00 pretax profit. This is true if it's Berkshire Hathaway or any other stock Where is the logic in that? If you have $10,000 to play with, you can buy 1000 shares of a $10 stock or 1 share of a $10,000 stock. In the first case a 1 point gain will net you $1,000 (less commission). In the other your net is $1. Your assumption is flawed...

To: Carl van Rooyen who wrote (84266)	1/4/2000 4:57:00 AM
From: Bald Eagle	Read Replies (1) \| Respond to of 90042

Obviously, you totally missed my point. If a stock is $10, I can buy five times as many as a stock that is $50. A thousand shares of Berkshire Hathaway would cost many millions of dollars for a potential gain of $1000. How many on this thread could afford to buy 1000 shares of Berkshire Hathaway? Probably nobody. I'm sure that many here couldn't buy one share. Let's say I have $20000 to day trade with. On a $50 stock and a point gain, I make $400. On a $10 stock, I make $2000! Not quite the same.