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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (27308)	12/27/2000 12:27:33 PM
From: Anthony Clement	Read Replies (1) \| Respond to of 65232

Voltaire Good morning. Can you share your wisdom with me on trading a stock on a daily basis?? 1 million in the porch fund is a great goal. Need to set mine for 2001!!! English Karen

To: Voltaire who wrote (27308)	12/27/2000 12:32:18 PM
From: im a survivor	Respond to of 65232

Excellent.....$4000 profit in just a couple minutes on a half point scalp....yes, Tom, I can easily see how one can make alot of money trading in this type of volatility...however, consider one thing....those 8000 shares cost you $320k. Thats quite a bit of "loose change" to have to put up to scalp that $4k profit. I guess my point is, if you have the big bucks, you can trade and scalp 1/4's and 1/2's all day long and make good money. You dont need 5 - 10 point swings to make a buck. You can make very good money on simply 1/2 point, and with this kind of volatility, heck, you could probably buy and take a 1/2 point several times a day and make that $4000 4 times each day, or $16k a day. problem is, not everybody has that kind of money. Lets say you can only buy 100 shares of rmbs.....that 1/2 point is a loser, after commissions. Or lets say you can buy 1000 shares.....$40k to make a quick $500, but again, $40k is nothing to some, and alot to others. So, I guess in closing, my point is if you've got the bucks, you can suceed in any market. You remember our earlier talks about the deep pockets enable one to be succesful....you can buy abcd stock at $100, and keep buying it all the way down to $20. If your pockets are deep enough, you now have an average cost that allows you to get out maybe at $30 with a profit. So you first bought abcd at $100, and now your getting out with a profit at $30....meanwhile, those that dont have the deep pockets buy at $100 and maybe $80 and $50 and then are leveraged to the hilt and looking at large losses. And now, you show yet another way of how deep pockets enable one to make some good money......lets face it.....when your scalping 1/2 point and 1 or 2 points a trade, you need to have quite a few shares of whatever stock you are trading for it to be worthwhile. I rememeber the days when I would buy 1000 CMGI at $100 and not blink an eye.......now, I'm lucky to have enough funds to buy a measly 100 shares of a $10 stock without having to worry about a margin call....my how time changes things. Anyway, I see your point and have lived your point. very easy to trade the volatility if you have the funds, whether it be an up OR down market...however, without the funds, you best hope the market is up and not down, or your in deep doo. Having the funds allows for an awful lot of damage control in bad situations and allows many great opp's to trade and make a good buck in any market. Not having the funds is a completely different story. goodluck.....hope january is a killer.......by the way....do you like extr at $40? How about as a CC vehicle....it's paying great premiums. I figure I'd grab some a tad under $40 and write cc's and take the 10% upfront. if she drops, I'll just keep doing it....I feel much better buying at $40 then at $90, even if it has more room to drop. Good luck with the porch portfolio....so far your looking good...what I'd like to see is you do the same thing with far less money. In other words, It's alot easier taking $100k and turning it into amillion then turning ...say $5000 into $50,000......sure you can do it, but it will take you ten times longer ( to achieve the same % gain ) with more risk and a different strategy employed...after all, you need alot more then a point here and there or all your doing is paying your broker. Have a good one......keith