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Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS -- Ignore unavailable to you. Want to Upgrade?

To: fftrader who wrote (363)	7/2/2001 3:50:55 AM
From: -	Respond to of 565

Hey ff, how's it going good to hear from you. Glad the flyfishing is as good as ever!:) Yes, of course we are all still very actively trading our own accounts - that is our primary business, also Deron & Ed run a hedge fund live. I can't imagine how strange it would be to try to run a trading room without being involved in live trading yourself -- that would be so incredibly boring, I would never be interested in that as an occupation for sure! The Intraday trading/educational center is an offshoot of our primary (trading) business and is highly synergistic. There are many side-benefits to us and our customers, most of them tracing back to creating a high quality peer environment and motivating everyone to place a higher and higher level of analysis/discipline/consistency into all aspects of our trading activities every day, since we are pushing to be "the best" online resource for intermediate and advanced stock & option traders. We probably won't appeal much to the beginners/newbies and it probably wouldn't be the right place for most of them to learn. Sector trading is a big topic... Deron did a 2-hour mini-seminar on it after the close 2 weeks ago that only scratched the surface (he's reprising that at the Online Expo in Anaheim next month). We watch many things when monitoring the sectors as part of our "stucture" for looking at the market... the technical/price action, volume trends, pattern setups, institutional and retail order flow/sentiment, various technical indicators, divergences between key stocks in individual sectors with respect to each other and with respect to any important news, and probably a dozen other factors that get different weighting at different times as appropriate. We are currently greatly refining the sector model to break each column out into "subsectors", which will make it much easier to zero in on the right stocks when news hits a sector or a stock... and we are adding sub-sheets with all the important fundamentals for each stock in each sector. We follow each stock in each sector closely... some senior trader-members help us to "stalk" each issue (the sector-squadron program), so we're a bit of a good-sized roving band of "stock stalkers"! And we have members with fairly deep previous career expertise in each area (drugs, semis, banks, energy, bios, healthcare etc) that help us to interpret the significance of news items as they hit the tape. And once you get familiar with the sectors you just start to "inhale" news off the TV, newspapers, weeklies etc as it takes on a new level of significance in your research. But 95% of our trading decisions are still purely technical, based on price and volume... structuring things by sector just helps us to monitor things in a way that gets us into the right stocks at the right time. It has more of an influence on how persistent, and how aggressive we'll get with a trade. But ultimately, the amount of risk we'll take is limited by our guidelines for "$ at risk" in any individual position and/or group of positions... we'll have mini-seminars on that topic later in the summer. Another neat thing we are starting to do with the sector is to monitor the volume flowing into a sector (in aggregate), vs. the 5 and 20-day average volume for that custom sector... pro-rated to that amount of time into the session. So by 9:40EDT we may see that the $SOX is on pace to do 150% of it's 5-day average volume, we're looking at the newswires, price action, analyst upgrades/downgrades and that is probably pulling us into that sector, for example. If you liked our site, check out our new full-page Ad campaign in Active Trader magazine... the pdf is accessible from our homepage (click below the magazine cover graphic to pull up the pdf). The ad provides a lot more detail about what our services deliver - our site is actually kind of lagging right now (we have a P2 in the works). Will we see you in Anaheim this year for the Online Trading Expo? Regards, Steve