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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Robert O who wrote (59122)	1/21/2002 1:53:26 AM
From: Sam Citron	Respond to of 70976

OT Scalping and Bias it can be profitable to very carefully abandon all beliefs about fundamentals and join the crowd Anyone who cares to study AD's trading history will notice that he made lots of money consistently taking 30 to 120 minute short positions in AMAT during a relentless 4 month uptrend between September and January. Having said that, it appears that a great way to trade is to trade, in general, in the bias direction of the stock say for that week. Not necessarily. Usually the reactive is swifter and more violent than the protrend phase. So a short bias can be extremely profitable even during a strong bull move if the scalper can recognize the tops of each succeeding saw-tooth high. However, if your trading time horizon is a little longer than the length of the average reactive phase or you are not quite so adept and prefer not to live quite so dangerously, it may pay to go with (and be bailed out by) the trend, provided, of course, that you have the ability to recognize it and the ability to recognize it when the trend has changed. Sam