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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (5471)	2/28/2001 1:48:37 AM
From: Dave Gore	Read Replies (1) \| Respond to of 6445

Ron, it's not just the volume that daytrader's create, it's the emotions and patterns we give off that help to change the psychology and even trading styles of the Market. How we act or react, even our mood helps determine how the big boys will act in how THEY trade. If we appear extremely nervous about earnings or earnings warnings, big hedge funds may determine they can create great shorting opportunities for themselves, which the momentum players and the small guy can help to magnify. Of course the small guy often gets eaten alive, if he or she is not savvy. MM's can also cause "panic runups" which the big institutions can start, then the momentum professionals and smaller investors can lastly get sucked into, then a short setup is defined just as the last of the small investor is getting in. When you have big funds that can score big on a 1/4 point rise or fall, it makes it hard in a choppy market for the little guy to score. So we have to pick our spots. Of course, much of this is nothing new, but things move just that much faster today. I didn't need Level II or real time charting 5 years ago, but today I couldn't live without it. I don't even mind all that....but I do mind having to feel like I have to watch the ticker every minute to protect my assets or insure better success. When no one has any real feel for whether the Market will be flat or up or down 5 or even 10% the next day and when everything seems to hinge on what one report or man will say, and when we don't even know if news is good news or bad news and have to depend on someone else to "Spin" it for us, then it's getting a little obscene.