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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 (442)	2/5/1998 12:14:00 AM
From: Ken Wolff	Respond to of 2120

NEWS STORY STOCKS (Part I) News story stocks are those stocks that react favorably or unfavorably to BREAKING NEWS throughout the day. First and foremost you need to ensure that this news is not old or repeat stories. You must be able to determine if the story is a good one and react quickly. I do not invest in any stock until I am sure of the direction of the price. (continued...) Ken mtrader.com

To: Ken Wolff who wrote (442)	2/5/1998 12:23:00 AM
From: Ken Wolff	Respond to of 2120

NEWS STORY STOCKS (Part II) (continued...) HOW TO RECOGNIZE A GOOD STORY Recognizing a good story requires patiently educating yourself by keeping a DIARY. While scanning your news headlines write down the stories you feel will move a stock while placing the symbol of the stock on your quote screen. Generally speaking, a story should have an impact on the FUTURE EARNINGS of the company. For example a 50 million dollar order will have little impact on a stock trading at $90 per share but it would be a significant order for a stock trading at $0.50 per share. Write the symbol in your diary and then rate the story using a scale of 1 to 10. "1" being the least impact and "10" being the greatest. Watch the stock trade and note how much the stock price rises before the sell off. I call this the FIRST OSCILLATION. (continued...) Ken mtrader.com