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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: jaytee who wrote (13405)	11/8/2000 10:01:24 AM
From: jebj	Read Replies (1) \| Respond to of 14162

>He jb: Are Cisco and RMBS both stock that you know intimately from daytrading? Do you know their habits pretty well (channels) from experience, so that you are able to make decisions when to get "on the bus?" Or are you using the CHARTS to make ENTRIES and exits? And when you do exit, are you just PREDETERMINING an amount that is "enough" and get out? >Like to hear about you daytrading guys, thanks - jaytee Yes, JT - they are both stocks that I follow on a daily basis. In both cases I caught them on a swing down and road them up - just as I would do in my daily trading. RMBS has some good news and CSCO had had some not so good news to take it down and then some good news to start it back up. I trader on the momemtum of the stocks - news events affecting them or the sector - don't use charts at all other than 1 min charts to follow them intraday. Ref. daytrading - I do not do what many have seen on TV and in written reports as "daytrading"" - making several hundred trades a day. IMHO, those guys aren't traders, they are gamblers, and in the end they do not make it longterm due to the high commission cost vs the small gains they are making on each play. A blown stop here and there and their capital is gone. I follow Ken Wolff's Momentum Trading - some very hard and fast, set in concrete rules about what you trade and when, not just trying to take a 1/16 and run. Some days I make no trades, some 5 or 6 - not usually more than that. And although I do carry a stock over night - or even for longer periods at times - I am usually in cash at market close - - i.e., daytrading. IMHO, Ken Wolff is to day/momentum trading what Herm has been to options here - the "guru" of the art. Just as Herm, IF you follow his rules and guidelines you will make money. That is, however, one big IF - trying to control ones emotions and do what you are suppose to do when you are suppose to do it is overwhelmingly the most difficult thing to learn - and control. Although a week+ does not make for a good test, it appears using my daytrading skills in shortterm trading of options is working well - I have only made 3 options trades in the last 5 days but have increased my options account by a little over 30%. That is better than I have done in my trading account - and at much less risk overall, it seems. It was not my intention to shortterm options when I started back last week buy to follow Herm's longer term plays. However, when I saw some of the stocks I was following swinging 4-5 pts on the options interday and considering the smaller amount of capital required, I decided to try shortterm trading them. So far, so good - think I am going to like this. :) jb

To: jaytee who wrote (13405)	11/8/2000 12:59:57 PM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

Hi again jaytee and all: Just thought I would update on some of my latest trades and ideas. I sold hi short at 52 and covered this morning at 50 5/8 for a little 2 day gain. I am still short hgsi and think it will break below 90 soon, maybe even today. It is so overvalued at this level it is funny. I am waiting for oat to get back above 90 now that I have some free cash once again. It has mega debt and trades at a price to sales ratio of over 2. That is quite high for a company that sells food products. Just think, if you are long, for every dollar invested, you buy $2.50 worth of long term debt and no cash! WOW. Now, for a few long ideas. I sold my hlit too soon and will think about picking it back up on weakness. I also like egls, sfam, and ames. The ames calls a few months out have a nice premium. With the price at under 5 a share for ames, it seems people are thinking the company is going out of business. I don't think so, as looking at insiders, they are buying and above current levels. I will get back with more later. Good luck

To: jaytee who wrote (13405)	11/13/2000 10:16:30 AM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

Hi again all: Hope all your trades are going well. I covered my short on pdii friday one day too early. I can't bitch since I made a profit. I almost shorted jnic at 108 and am now kicking myself in the rear. Oh well. I went long this morning. I currently have no short positions since I think we will see a bounce to the 3000 level on the naz, which is where the support is. I bought wcom at just above 15. I made money on it last week and am trying to do it again. Therre are some bargains out there, that's for sure. But, with the current trend being down, I would not be buying unless it is for short term gains such as myself. Just for example, if wcom goes above 15 1/2, it is gone. sfam, my other long, may be longer term since it is trading at under 2 times cash on hand. Just some ideas and checking in.