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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (42)	1/6/1998 12:31:00 PM
From: Andrew G.	Respond to of 2120

PHX is at $.625 and QWST is buying it for $28.5 million of Qwest common stock and up to $4 million of cash. That's $32.5M. PHX has 32.5M shares out and 6.8M float. Article says there will be 36M shares outstanding if deal goes through. Is this an opportunity?

To: Nazbuster who wrote (42)	1/6/1998 12:46:00 PM
From: TFF	Read Replies (1) \| Respond to of 2120

Daniel here is my 2 cents: You need to spend ALOT of time watching stocks trade and analyze how stocks trade in relation to different indicators. Try to get a handle on patterns you see repeating themselves. Once you are able to notice these patterns you can start to build a trading system around them. Everyone is different, and it is the ability to recognize these patterns and time trades correctly that seperates good from bad traders. Good Luck!

To: Nazbuster who wrote (42)	1/6/1998 4:05:00 PM
From: Samir	Respond to of 2120

Yes Ken <<please try to get right down to the basics for those of us without a solid understanding in place>> Thanks Samir

To: Nazbuster who wrote (42)	1/6/1998 9:47:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

Daniel, I have started to notice that an active stock will have mild price fluctuations for awhile, then suddenly a series of smaller trades will go off all at the same price. What I cannot tell is if this is a signal at all, a signal for an uptick, or a signal for a downtick. In addition, I have no clue as to how far the move will go and whether it will offer enough change to trade it Very interesting observation. Generally, I like to have a pretty good idea of the direction of the trade if I am to play it. The trade must be one of the patterns I am familiar with and have memorized. I find the oscillation bottoms of an active stock by tracking the trades occurring at the bid or ask. When I see a trading PAUSE (bid/ask stops moving), that tips me off to a possible direction change. Next I consider the potential movement UP or DOWN depending on the trade. I usually like the most recent high or low to be about 3/4 of a point to provide me with enough potential for profits. So if I see my trade go down about a dollar from the high, I will execute a BUY when I note the PAUSE and trades occurring at the ASK outnumbering trades occurring at the BID (signals a direction change and an upward movement). I hope this helps. Ken mtrader.com