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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (2078)	12/16/1997 6:45:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 4969

"too "volitile" and "spurious" because they are illiquid or have the price action of illiquid stocks, " I don't know what you mean. A short term trader wants a volitile stock, movement makes the trade. You have not defined Illiquidity. "For instance, I am saying that it appears to be the nature of many low priced stocks to just sit there and do nothing" if a $3 stock goes up and allows 1/4 point profit that is a 8.3% profit. Dell would have had to go up 7 points today to achieve that move. Now did you consider that in your review of stocks, that just sit there. I can't think of any priced stock that just sits there, that would be a candidate for purchase. You are looking for breakouts off bases. Remember this and the daytrader topic are talking short term - so If price moves up things are good, If they go down or "sit there" sell. We aren't talking about guys in smoking jackets sitting around talking about GM. We are talking about someone wanting to max profits even to the degree they don't hold overnight. . I have used $20,000 in purchases of a particular stock before. This can have me end up with 1000 shares. On a $2 stock, this would be 10,000 shares. " Have you ever followed the time/sales of the lower priced stocks? Have you reviewed the volume on <10 stocks? Your 10,000 would be a passing flick on the screen for a good stock. . I have looked at many of the stocks that one particular scan of yours came up with back a few months ago. They looked at times to have very volitile and even "spurrious" (not fluid) price action." What does that mean? Is that the "investor" speaking? I hope they were volitile. Don't know which scan it was, but they were trending stocks I hope. I try to stay away from ranging stocks with little price movement. Yes, BBands can encase a slow moving stock that just sits there. Risk is present in any trade. You better watch them all. Hard to have it both ways, one buys because a $3 is cheap and limits his money loss to $3000, no worry, yet he makes stock volatile because he is afraid. I was blessed to be introducted by TA people to market, Not by a college professor, Lynch, Buffet, or the little old ladies club.