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

To: Ken Wolff who wrote (65)	1/7/1998 1:39:00 AM
From: Ken Wolff	Read Replies (2) \| Respond to of 2120

Rule #4: STAY AWAY FROM STOCKS WITH SPREADS OVER 1/8 The rule is in place to limit one's losses. Any stock that changes the spread dramatically should be avoided. I have been in trades, not too often, that can be under heavy buying when the market maker drops the bid 3/8 for no apparent reason. I think many times they anticipate the sell off and are taking the profits from traders. When I see this I exit immediately and never trade that stock again. 3/8 plus 1/8 original spread cost me 1/2 a point loss. Any selling at all and you will be down one dollar in a hurry -- not a smart trade. Ken mtrader.com

To: Ken Wolff who wrote (65)	1/7/1998 3:05:00 AM
From: David E. Henry	Respond to of 2120

TRUE! TRUE! TRUE! learnt this the hard way!