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

To: Thean who wrote (117)	1/8/1998 6:21:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

Hi Thean, how would one momentum trades on the downside? Generally the downside on any stock can only be predicted for a very short period of time. When a stock or a group of stocks starts on a downtrend, it is difficult to tell where value investors (traders) will come into the stock and push it up. I like to look for over-reactions with selling and buy the bottoms so I am there when the value traders come into the stock. I can usually only play these trends for 2 days. I have also found that most stocks are very predictable after making a 20% gain in one day after a long down trend. They tend to resume the downtrend and become good short candidates. Ken mtrader.com