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To: Richard Estes who wrote (2432)	1/14/1998 3:51:00 AM
From: Tai Jin	Respond to of 12617

I haven't been doing much daytrading, but I believe that one can be successful at it. I think the biggest challenge for daytraders is the short timeframe and what that entails. You have to be quick and sticking to rules is that much more important. When you invest it doesn't matter if the stock goes down short term because you're in it for the long haul. You just don't have that kind of luxury when daytrading where the stock price can change direction from one second to the next. I think an appropriate analogy might be the difference between a hand-eye coordination game (quake) and a strategy game (monopoly). Having said that I will tell you what I try to do when I daytrade. But note that I'm not an experienced daytrader and I work with very limited trading capital, although that probably doesn't make much of a difference. 1. Look for stocks in a trend or trading range, or news events which might affect a stock in a predictable way (e.g., upgrades/downgrades). Use technical analysis (with my limited knowledge of it) and other knowledge about the stock to help make an informed decision. I try to observe the trading pattern or behavior of a stock before I trade it myself. The more you know about how a stock moves the better off you are. 2. Once I'm in a stock, try to get out as soon as possible but not sooner. I'm always looking for at least $100 profit in a trade. If the stock only goes up 1/8 and pulls back and I'm confident that it will go up more then I will wait. If I'm not confident then I will get out. It's important to have confidence in a trade. Once you are confident, greed and fear should not be a factor in your decions. Of course, your confidence should be based on sound reasoning. 3. I won't trade unless there exists an opportunity for a good trade. I don't trade for a living, so I don't have the pressure of having to generate income this way. And as I said, be confident in your trade. Making sure that you are trading in a favorable situation will give you confidence that the trade will go your way (of course, there are no guarantees). I'll be the first to admit that this isn't a very comprehensive and precise system, but it's a start and I'm still learning. And I'm not sure it needs to be very precise anyway. Now despite my efforts, I still end up with some big losses, usually because I didn't follow the basic rules of daytrading. My biggest fault is not taking profits when I should. This usually leads to my other fault of not cutting losses when I should. As these two faults are usually caused by emotions, it is important to trade without letting emotions get in the way of your decisions. This takes practice, discipline, and patience. ...tai

To: Richard Estes who wrote (2432)	1/14/1998 8:40:00 AM
From: TFF	Read Replies (1) \| Respond to of 12617

Richard>>>>: We will have to see how the daytraders last over time. I know I will be there. Are you suggesting that Day Trading is a NEW phenomena? If you have been around since 68 you know full well that there have been successful Day Traders around for just as long or longer. You seem to think this thread represents the entire spectrum of Day Traders out there. Nothing could be further from the truth. Just because there are no specific Day Trading systems laid out on this thread does not mean they do not exist. You seem to hold some kind of contempt towards Day Traders. If this is the case I must ask myself why.