Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: taLuis who wrote (275)	1/16/1998 5:49:00 PM
From: Ken Wolff	Read Replies (2) \| Respond to of 2120

READING THE MARKET Since October we have entered into what I call a "Nervous Market". It is a market in which traders in general are confused and don't have clear direction. I changed my trading techniques to play what is the most consistent behavior in an inconsisitent environment - PROFIT TAKING. Generally speaking I look for my normal over reaction type stocks (stocks that are up or down over 20% in one day such as GERN, we shorted at 17 and covered about 12 1/4) and look for opportunity to enter trades SHORT. Many of my traders were not used to shorting and continued to push me to find trades to go long on. I continued to push them by teaching them to SHORT and it has been a consistent winning pattern ever since. Now they think SHORT at the drop of a hat and are making some impressive trades. To be consistent as a daytrader and take the CREAM of the market you must learn to change your trading methods to play the most profitable pattern the market has to offer. I watch the daily behavior of the gainers to get an early tip off as to the buying strength or weakness. A few days ago I noticed all the tech stocks were getting good buying off their bottoms and saw AMAT lagging a bit behind. I was able to call a good trade based on this "TECH BUYING" as I felt sure AMAT would also get bottom support. If you are trading stocks the way you did this last summer you will no doubt be losing as the patterns in the market have changed and the astute daytrader will change with them. Good Luck Ken mtrader.com P.S. Thanks Luis