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.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (41306)	5/3/2000 6:56:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 93625

Re: Daytrading Rambus About 39% of the volume today was on Island. This is one of the primary daytrading ECN's. I would venture to guess that more than 50% of todays volume was daytraders. Pure day trading consists of take long and short positions on a stock (sometimes at the same time in two separate accounts and then removing one of the positions once a trend is established). A real day trader closes his position each day. Thus if he was short the stock in the morning he would have closed his position out by the end of the day. A "short" may take a position against the stock and hold that short position for months, weeks or days. Similarly a bullish "long" may hold his position for years, months or sometimes days. Day traders close their positions daily to avoid large losses due to gap up or gap down's which could do them in. They usually settle for small daily gains on their positions. RAMBUS displays a lot of the symptoms of day trading. If it falls in the morning, it frequently rises in the afternoon as the day positions are bought back. The reverse is also true many times. There was high volume today indicating that about half the float turned over. That is a lot of volume IMO. Pure daytraders actually do nothing to a stock except make it more volatile and more liquid and increase the volume during the day. However, the volatility may scare others into selling. Unless some unforeseen change in the company's fundamentals or there is a bear market, I do not see the stock price hitting $ 122 again. There is no longer any doubt as to the industry's commitment to this new technology. :)