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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey Beckman who wrote (31411)	7/9/2002 12:58:41 PM
From: TATRADER	Respond to of 59879

hi Jeff.... 1. A drop shoe is a stock that drops 60-80% on a single day 2. A drop shoe has 85 million shares outstanding or less 3. A drop shoe has some good institutional ownership 4. A drop shoe holds above its prior day low If you enter, you always place your stop just below the low, to protect you, in case there is a second leg down... You calculate the price move from the low of the move down from the close the day before the drop.... You take that amount and multiply by 25%.....Add that amount to the low for your target... Let's take an example: ELN Close on day before drop was 4.91 Low was 1.31 Difference is $3.60 Multiply 3.60 x 25%=90 cents... Add 90 cents to 1.31 for safe target of 2.21.... Another safety factor is when the bounce begins, get out when the momentum ceases, even if it doesn't hit your target...Right now I am playing a longer term drop shoe IDEV..In at 1.04 with 15,000 shares, and looking for 2.00 price target... ELN made a bounce to 2.55, you would have missed a bit of the run, but been very happy nevertheless...As I write this ELN is trading at 1.88....hmmmm......