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

To: John F. who wrote (102482)	5/4/2000 2:19:00 AM
From: BarbaraT	Respond to of 108040

John ... this fellow is a friend of a friend. I met him briefly a few times and can't get much out of him. I gathered that he has been doing this for a few years and he said that he makes 1000 trades a month, uses four monitors and has subscription services that give him instant news, etc. He said that he has 6 different brokerage accounts in addition to his instant execution. He did tell me the name, but I can't remember it (it was NOT Mytrack). He also said that he gets ipo's - 1000 shares at a time, like an institution and he flips them. I don't understand any of the answers. I asked how can you flip them and keep getting them, and he answered because he gets them through one company (like Goldman) and sells them through another. I really don't understand how he can do that. He said it has something to do with delivery time, and so the firm giving him the ipo does not know he flipped them. Wish I could answer your questions - but it is very complicated. And yes, he mentioned something about a T1. His subscription services cost him over $1000 per month - he gets continuous feed on news alerts so that he will instantly buy or short a stock and hold it for a few minutes. He said he does not hold ANY stock, long or short, for more than a couple minutes. As for his learning - I think he was a broker. He also said he writes covered calls on occastion, but does not play commodities or futures. I was watching CNBC after the market closed last week, and they mentioned that although many traders lost a ton of money in the big freefall a couple weeks back, there was one trading room where some people made a lot of money. One of the guys interviewed said he also had his best day - made $80,000 and he usually makes about 2-3,000 on a typical good day. And he said that some of the traders in his group made more than him. So, seems a lot of people knew what they were doing. Sorry I can't be more helpful. But if I run into him again, I will try to ask him some more questions. He did tell me that on a down day, he looks for stocks that are showing strength and goes long on them (for a few seconds) and scalps 1/4 points. He said that most of the time, the ones going up will continue. And on up days, he shorts the stocks that are weak. He also plays very volatile stocks -- mentioned he repeatedly plays JDSU in both directions. But one thing I do remember, he said you have to have the money to make money. His account has to be worth more than a million to cover all the plays he makes. He said he bought 5000 shares of JDSU and traded it several times in a half hour. That's $500,000 everytime he makes a trade ... and for 1/4 point he's making $1250 each time. A lot of risk, but I guess when you're quick on the trigger he figures he's limiting his loss to 1250 also. Too scarey for me ...and I don't have that kind of money (except in my dreams). From comments he made, I think he has a big trust fund.