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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 (456)	2/6/1998 1:42:00 AM
From: mike pelino	Read Replies (1) \| Respond to of 2120

Ken: I always trade on pending CNBC interviews. Long position up until the interview, watch for the pause in buying, then sell the long position and short. It is best to know what the interview/news is - valid or hype Resent examples Medtronics MDT - valid Geron GERN - hype mike

To: Ken Wolff who wrote (456)	2/6/1998 7:19:00 PM
From: Melissa McAuliffe	Read Replies (1) \| Respond to of 2120

Ken, I really appreciate all these informative posts you are leaving. I have very little experience so I am reading everything and anything I can sometimes to the point where my eyes are burning. I wanted to share this because it had to do with a trade I did today on news. This morning on cnbc they announced that TKLC had an upside earnings surprise of .08. I checked First Call and found that estimates were .23 and they did .31 which I thought was pretty good. I figured the stock had probably already run up to reflect this but when I checked my daily charts in Quotes Plus, I noticed that the stock had been moving up for the last week but that yesterday it closed down almost 3pts from the preceding day. So I figured that this wasn't yet reflected in the price and it was a big surprise to all. So I decided to watch this stock. It opened at 40 1/2..up 5 points. I watched it after that for a while and it moved down to somewhere closer to 38 and then started to move up again. It then went some down to around 38 again and then moved up and closed at around 40. I have never traded or invested in a company where I have no clue what they do but I decided to try this based on reading your posts yesterday about trading on news. I actually was successful though I will admit I need help with my entry and exit points. I didn't buy at the low or sell at the high but that's ok w/ me since I made money. So thank you for putting the idea in my head. Melissa

To: Ken Wolff who wrote (456)	2/6/1998 7:27:00 PM
From: Melissa McAuliffe	Respond to of 2120

Speaking of news and where to get it. I am using pcquote and I was speaking w/ them today. On March 1 they will be adding a new news service called DowVision. This service will cost $50/month and apparently you can set alarms not only by symbol but also by keyword, e.g. stellar, record results, acquire, etc. The person I spoke w/ @pcquote said this is the same service that professionals pay $700/month for via satellite feed. From what I gather, you can get all headlines but only between 200 and 400 complete stories per day as selected by DowJones. These stories are selected based on their level of importance according to Dow Jones' definition of important. But I would think the headlines would be enough. Does anyone know if this price comparable or less than other real time news services?

To: Ken Wolff who wrote (456)	2/7/1998 2:39:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

NEWS STORY STOCKS (Part V) Here is an outline of the procedures I follow when trading "GOOD" NEWS STORY stocks: STEP 1: When a good or great story hits the newswire it should be placed immediately on the quote screen. STEP 2: Set up your buy order on your on-line broker software. STEP 3: Note the SPREAD and VOLUME. I prefer stocks with spread of 1/8 or less. Watch the Market Maker and do NOT consider the stocks that have WIDE and/or CHANGING spreads. "Spread Changers" are those stocks that start at 1/8 spread and quickly change to 3/8 spread or more. Note the VOLUME. Low volume stocks should be avoided unless the story is a "10" rating. STEP 4: If you should see a few buys at a fairly rapid pace (a buy is recognized by a trade occurring at the ASK price and a sell would be a trade occurring at the BID price). CAUTION: Stocks that move at a very fast pace should be avoided. If you do not have the time to place a trade at the initial rally price, you should LET THE TRADE GO until it settles down to a more trackable level. Note the buying price at the start of the rally and place a LIMIT BUY order. If the story is rated 10, then you may want to buy at MARKET. STEP 5: Note the time you placed your order. DO NOT CHASE. If a stock moves up too fast and you place a MARKET buy order at the initial rally you may be delayed (funnel effect) because of other buy orders being placed at the same time as yours. The delay may cause your order to be executed at the HIGH of the rally. It takes time to get a confirmation from your broker and you need time to sell. (continued...) Ken mtrader.com

To: Ken Wolff who wrote (456)	2/7/1998 3:09:00 PM
From: Ken Wolff	Read Replies (3) \| Respond to of 2120

NEWS STORY STOCKS (PART VI) RULES FOR TRADING NEWS STORY STOCKS: - I stay away from extremely fast moving stocks initially because the fast movement up is always followed by a fast movement down. YOU CAN LIVE WITH MISSED OPPORTUNITY BUT YOU CAN'T WITH MISSED CAPITAL. - If your order is not filled be sure to cancel it! - DO NOT BUY unless you are sure you will at least CLEAR YOUR SPREAD. - If there are any selling (trades occuring at the BID) at the initial rally price DO NOT BUY. You should see the stock price rise at a nice easy pace. - Set up an MARKET SELL order on your execution software and be ready to execute it as soon as your broker confirms your buy order. - SELL as soon as you see a PAUSE in the upward movement of the stock accompanied with an increase in selling along with trades that occur between the BID and ASK. Unless you want to jeopardize your short-term profits, this is the generally the TOP of the first oscillation. - Watch the sell off because the initial high will usually be the high of the day unless the story is exceptional. REMEMBER: TRADE THE RULE NOT THE EXCEPTION. - A stock will rarely go above 20% on one rally before the sell-off. You can be sure it eventually sell off. BUY THE RUMOR AND SELL THE STORY! - Beware of a stock that gets a story and when you place it on your quote screen it is already up considerably with high volume. Chances are the story has already been released by another news source or you are just getting a repeat of old news. You may want to buy after the first sell off. - Many times, just as much profits can be made AFTER the first sell off on a MOMENTUM STOCK. If I missed the days story, I don't worry. There is still money to be made. I buy any high momentum stock the day after the story hit on the first low of the day, which usually occurs early. This practise is a consistent money maker as these stocks usually continue to see good strength off the low. - Any time you purchase a stock, your target should be at the low of the day. This is the safest way to invest as most stocks will bounce off their lows. I see on a daily basis investors buying at or near the high. They think that new highs are going to be made and invest by HOPE and not by reason. Ken mtrader.com