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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 (491)	2/11/1998 11:17:00 PM
From: Stephanie M	Respond to of 2120

Thanks Ken, I jumped and leaped before..... Not complaining just have dead money, no loss no gain. Picking the ones to average down on and get rid of. Is that wise or just take the loss and go on? Steph

To: Ken Wolff who wrote (491)	2/12/1998 12:40:00 AM
From: Marlin C. Harmon	Read Replies (2) \| Respond to of 2120

Ken Someone just responded privately regarding the use of options in daytrading. Since I have not heard from you, I take it you are not inclined to use them. But- just thought I would ask anyway. regards, Marlin Ps. Like your thread and I am enjoying daytrading using the more methodical approach taught by you, irby, and others in place of the the "gut feel approach" which I have used until a recently. Keep up the great posts.

To: Ken Wolff who wrote (491)	2/12/1998 1:05:00 AM
From: Ken Wolff	Respond to of 2120

PUBLICATION STOCKS (PART I) A few years ago I caught a story on a stock that came from BusinessWeek magazine. The story appeared on Friday over the Dow Jones News Service and moved the stock fairly well. It occurred to me that I had seen BusinessWeek on America Online. As it turned out I was able to read the stories on Thursday night and develop a trading system for those stories. The interesting thing about BusinessWeek is that it did not hit the news stand on the West Coast until Monday. In essence what you have is a provider of momentum that can last for a week. I have developed a strategy to exploit this pattern. Note: The stories are found in the "Inside Wall Street" column. businessweek.com (continued...) Ken mtrader.com

To: Ken Wolff who wrote (491)	2/12/1998 1:20:00 AM
From: Ken Wolff	Read Replies (6) \| Respond to of 2120

PUBLICATION STOCKS (PART II) Here is how I play a BusinessWeek stock. Other publication stocks can be played in a similar manner depending on the time of the week it hits the stand and the on-line medium. STEP 1: Read the stories in "Inside Wall Street" and rate them so as to find the BEST story. Put the symbols on the quote screen and wait for Friday's open. STEP 2: I like to see the volume open with at least 75K shares or more and the price should be up at least 1/2. Normally the stock will sell off to about a quarter of a point below the open where it should be bought. Any excessive selling at 1/8 below my purchase price will cause me to exit the trade. I am only willing to risk 1/8. STEP 3: I will hold the stock through the week-end and allow the story to affect the stock on Monday. STEP 4: The stock will usually open up and sell off fairly soon after the open. I sell at the first indication of selling. STEP 5: The stock should be repurchased after the first sell off. I will sometimes hold my trade for a few days as they continue to rally all week. I try to ride the profits as long as possible. Remember the story is being digested on every desk where BusinessWeek may sit and can continue to rally. Also remember to take into consideration the sector the stock is in. Good Luck, Ken mtrader.com