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To: TFF who wrote (1936)	12/17/1997 12:51:00 PM
From: TFF	Read Replies (1) \| Respond to of 12617

ADT - Trading Techniques: A Question of t.r.u.s.t. adtrading.com Days to Trade, Beware and Avoid adtrading.com A Checklist For The Open adtrading.com 10 Rules For Traders adtrading.com

To: TFF who wrote (1936)	12/17/1997 1:11:00 PM
From: ams	Read Replies (2) \| Respond to of 12617

Re:Definition of Daytrader It can be defined anyway one likes. However, IMO it is one of the most misunderstood terminologies in the trading industry. In fact, I would call the term "daytrading" a misnomer. Closing your position simply because it's 4pm seems highly artificial. Most great traders,including daytraders, (Market Wizards-I,II, Supertraders, TASC interviews, et al?) I have read about and a few I know use the "close" to their advantage. Gaps tend to be an exaggeration of the trend already in progress. Thus, great traders keep a position overnight when they expect a possible gap to be in their favor. Personally, in my 10+ years of trading, with about 1000 trades a year, I have noticed a steadily decling number of gaps going against me each year. And increasing number of gaps in my favor. This is most likely a result of my improved ability to recognize trends. In fact, I have not had a significant gap (2pts or more, I trade mostly $15-$60 stocks) goes against me in 3 years. I short as easily as I go long, uptick rule notwithstanding. So, when I see Steve and others, warn against holding stocks overnight, I tend to disagree. Although, for beginners, it may be prudent. When stocks such as OXHP, INTC, and now DANKY are mentioned as examples of not holding overnight, I say BullHockey. They should be held overnight, as SHORTS. In all above cases, no decent trader worth their their moving average would have been long those stocks. I could not have predicted their gap downs, but I could have predicted down days with high probablity. No matter what, never risk more than a small % of your capital in one trade. I risk no more than 10%, meaning the $ value of my position is no more than 10% of my trading money. Realistically, a good back-tested "stop" should protect you from a drawdown no worse than 1-2%. Good Trading

To: TFF who wrote (1936)	12/17/1997 1:17:00 PM
From: xstuckey	Read Replies (3) \| Respond to of 12617

"By avoiding holding stocks overnight you effectively eliminate the risks of having a position move heavily against you." Hi irby, While this is certainly true, you are missing one of life's great challenges. To wake up on the right side of a significant gap up or down is an exhilarating experience, and I believe, not all that hard to do if you limit yourself to heavily traded NASDAQ stocks. I think important news is known in advance by big money, and is reflected in the short term price moves at or near the close. Using almost any good TA filter should detect this type of impending move. The problem, of course, is that the same filter will give signals even when the big move is not in the cards. For this reason, I trade only one stock, and trade it all the time. There have been 4 big gap days so far this year in Intel, and I have been fortunate to be on the correct side each time. But to do this, you must take frequent losses and most find that extremely distastful. I tend to view it as a part of trading. Best Trading, X