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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: KymarFye who wrote (12139)	3/3/2001 9:18:37 PM
From: TheStockStalker	Read Replies (2) \| Respond to of 18137

It's therefore not that surprising that PDT's firm is so secretive about what they're doing - for the moment, anyway, they appear to have a significant edge, though I have to wonder if the market, with typical perverseness, isn't about to ruin the fun. I realize that it is fun and easy to think that there is a "Secret" to making money and that by simply following it anyone can come close to the results. If I gave an impression of keeping secrets, it was not because I was trying to keep a trading style from anyone here. Rather, it is simply related to being a licensed trader and chatting online with retail traders. It is a practice that is frowned upon by many trading institutions. I ALREADY told you what my style was. It really is as simple as stated. By the way, it is not a firm sponsored strategy. It is probably only used by 1 percent of the traders we have. Though we probably do 80 percent of the tickets. As far as losing the edge I have in the current markets.... I have to say that the edge has been quite dull for some time. It can only get better from here. Basically it has required the taking of profits in a quicker manner. buy-high/sell-low system... which is obviously the opposite both of good trading range styles as well as conventional wisdom about stock trading I think that the fact that it defies "Conventional wisdom" is a hint that it probably does work. I do not understand why people are so afraid of buying the new highs. I only give my stocks a loss of 3/4 to 1 percent, whichever is larger, to get into all of these positions. It does not take long to have put on 40 or 50 winners using the strategy (in today's choppy market). I think some people must buy one or two new highs (or sell lows) and then lose and then make up their minds that it does not work. Ask yourself, "How many times have I sold out of a position that went against me a half point only to watch it turn around an run away from me". It happens all the time and it used to happen to me too. I think that the strongest defense is often a strong offense. Quit trying to read stories into the level 2 and go look for the next stock. Breakouts are not supposed to be one way and easy. They are more of an indicator of what the stock wants to do ultimately. By the way, I do buy the pullbacks too. Probably 20 to 30 percent of my entries are on pullbacks. I also think that buying the highs and selling the lows is always safer than merely guessing where something is "going" to turn around and hoping. IOW the chances of something moving up and continuing up is higher than something turning around. Otherwise I think you would see Northbound hitchhikers thumbing rides on the south bound lane and hoping for a reversal. LOL