from MBTraders....fast suzie versus slow joe...
[09:39] <KenWolff> a biggy about trading the early market is picking the
best trades...
[09:39] <KenWolff> We have a variety of traders in our room,,, some are
"fast suzies",,, and others are "slow joes"
[09:40] <KenWolff> fast suzies only need a stock to focus on and they will
hit the buy button in a blink of an eye
[09:40] <KenWolff> so I can say: "XYZZ is selling,,, and should bottom
soon"
[09:40] <KenWolff> when it bottoms , suzie is in the trade and making
money..
[09:41] <KenWolff> unfortunately slow joe has just put the stock on the
screen when suzie is already in the trade..
[09:41] <KenWolff> and is probably waiting for Ken to say: "I WOULD BUY
THIS NOW, RIGHT NOW!!!! AT 22 BUCKS"
[09:42] <KenWolff> unfortunately the trade will also probably be gone by
the time I type it and you get a 4 or 5 second chat delay
[09:42] <KenWolff> so .. If Ken were to alert the trade in the proper time
for slow joe,,, Ken would need to say: "buy the stock now" when it would
still be selling like crazy..
[09:43] <KenWolff> which is a very uncomfortable thing for anyone to do...
[09:44] <KenWolff> so it necessitates a certain amount of responsibilty to
YOU the trader... to recognize the bottoms, buying,,, while it is our
responsibility to only give you THE BEST POTENTIAL TRADES
[09:44] <KenWolff> Lets diverse a bit and talk about resources
[09:45] <KenWolff> I could very well tell you the following during a normal
market open... :
[09:46] <KenWolff> as I see our indicator bottom (such as BVSN) ,,,, "BVSN
is bottoming,, I would buy INTC, MSFT, AMAT, WCOM , RMBS, QCOM, CMRC, EBAY,
YHOO, AMZN, CSCO, ATHM, PCLN.. and on and on I could go"
[09:46] <KenWolff> so I could easily at the end of the day say: "gee I did
well calling 25 trades off the bottom and made a bundle"
[09:47] <KenWolff> but the more trades I call.. the more resources it would
take to actually buy the trades... not to mention the incredible speed it
would take to catch so many bottoms
[09:48] <KenWolff> so you would need to buy the stocks in 3 micro seconds
per trade and have a $4500000.00 portfolio
[09:48] <KenWolff> so what we attempt to do here at MTrader is find the
best stocks, with the cheapest prices with the MOST potential...
[09:49] <KenWolff> so the fast suzies will do well on more trades... but I
am more concerned with the "slow joes"
[09:49] <KenWolff> It is my desire to deliver a few trades that are
resonably priced while still providing adequate potential
[09:49] <KenWolff> resonably = reasonably
[09:50] <KenWolff> I would rather deliver 80% successful trades,,, and only
call 4 per day,,, than to call 25 trades and have 8 be losers..
[09:51] <KenWolff> that is how I have traded over the years... few trades
and as I work out my percentage gains per trade I adjust my shares to
accomodate my needs..
[09:51] <KenWolff> so gimmie and I are working on improving our trading to
accomodate for the "slow joes"
[09:52] <KenWolff> we will discuss
[09:52] <KenWolff> brain storming
[09:52] <Gimmie> One point I would like to add though is that reasonably
priced can be a bit misleading sometimes I tjhink
[09:53] <Gimmie> Alot of times we see that smaler shares of a larger more
stable continuing momentum stock will be safer, and offer more potential
than large shares of a small volatile stock
[09:54] <Gimmie> I also get the feeling that alot of people get lost in so
many choices, and wind up not doing anything
[09:55] <KenWolff> I agree..
[09:55] <Gimmie> So I think fewer choices, that are more stable, and
consistent, is easier in the long run for Slow Joe
[09:55] <KenWolff> I know that many times I am looking at 20 stocks.. and I
have no idea which one will move the biggers
[09:55] <KenWolff> biggest
[09:56] <Gimmie> I am talking with alot of traders here, and I see the ones
that are more successful leaning toward following a stable basket of stocks,
same stocks everyday
[09:57] <Gimmie> and stocks that have continuing consistent momentum, good
volumer, good pace
[09:57] <Gimmie> Getting back to preparation also,
[09:57] <Gimmie> I feel that preparation does wonders to build confidence
[09:58] <Gimmie> Slow Joe, isnt getting in, because he isnt quite sure of
what to expect
[09:58] <Gimmie> Fresh news plays will often hold the most potential, but
they are usually faster, more experienced plays
[09:59] <Gimmie> and they require I think a solid understanding of
patterns, situations, variables, because they are different stocks ,
different situations each day
[10:00] <Gimmie> If you think of it like a game of chess, you can memorize
moves, situations, so that whatever situation comes up, you are prepared and
ready and confident
[10:00] <Gimmie> but that takes time
[10:00] <Gimmie> For a begginner, I feel it may be better to memorize one
or two plays, and get good at those first
[10:01] <Gimmie> I think of continuing momentum trades as bread and butter
trades, and news fresh plays, as whipped cream
[10:02] <KenWolff> I like that...
[10:03] <KenWolff> I think gimmie and I will be working together while she
is here to come up with a format for identifying the best trades...
[10:03] <KenWolff> the easiest while still providing good potential
[10:03] <Gimmie> Obviously there are variables to continuing momentum
trades too. They follow more closely the macro-momentum
[10:03] <Gimmie> require the same techniques, skills
[10:04] <Gimmie> but something about familiarity with a stock, helps build
confidence
[10:05] <Gimmie> and thats joes problem I think
[10:05] <Gimmie> When we come to open, we are throwing out all these
options, and for experienced traders its great, they know how to find the
option that matches their needs
[10:06] <Gimmie> But I see Slow Joe a bit confused, and overwhelmed, and he
doesnt want to miss out, so he grabs something, often late
[10:06] <Gimmie> from that list
[10:07] <Gimmie> and the problem I see with trading is that you are
generally working with a timer. Yolur hourglass has been tipped over, and
you only have so much sand
[10:07] <Gimmie> and you need to get profitable before you sand falls out
[10:08] <Gimmie> So any confusion, uncertainty, wastes your time
[10:08] <Gimmie> It takes time to find your way, to uncover the world of
trading, to understand all the variables concerned
[10:09] <Gimmie> But your sand is running, so you need to figure it out
fast
[10:10] <Gimmie> The more you can simplify your choices to consistent
trades with potential, that adds more sand for you, that can buy you some
time
[10:10] <Gimmie> get you profitable with bread and butter before you learn
how to add whippedcream
[10:11] <Gimmie> No, bread and butter isnt glamourous, but its food
[10:11] <KenWolff> fast suzie will always make more money and will get the
most out of the market,,, but I have always been a bit slow and I know that
the slow traders also have potentiall..
[10:11] <KenWolff> if you can pick the best stocks that fit your individual
abilities..
[10:12] <Gimmie> And the thing is though, that Joe will never have the
opportunity to become fast suzie, if his sand runs out during his confused
stage
[10:12] <KenWolff> having taught quite a few fast suzies.. I can tell you
they all begin as slow joes...
[10:12] <KenWolff> I think that many times the early trading is a guessing
game... and it is tough to pick the best trades..
[10:13] <KenWolff> some like BVSN will get selling... first,, and others
will get buying... because of the variables,,,
[10:13] <KenWolff> BVSN was up big on Friday,,, and gapped up on a
relatively weak open
[10:13] <KenWolff> while RMBS gapped down,,, and got early buying
[10:14] <KenWolff> so profit taking was less of an issue with RMBS at the
open... because the exiting occurred pre market
[10:14] <KenWolff> in any case we are challenged to help you make trading as
clearly and simply as possible...
[10:15] <Gimmie> I have to tell you too, that this is an evolution. I am
learning as I grow, and we grow together. My views from one year ago arent
the same today. This is based on what I am seeing and learning now.
[10:16] <Gimmie> So we are putting together a more concrete organized plan
to follow bread and butter trades
[10:16] <Gimmie> and clearer alerts to help slow joe
[10:16] <KenWolff> I am planning on beginning my "Market Dynamics" teaching
again from the beginning to help absorb the variables and deal with them..
[10:17] <KenWolff> Ok.. that is about all I have gimmie... you done?? |
