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: Peter H. Hodge who wrote (510)	2/15/1998 12:05:00 PM
From: Ken Wolff	Read Replies (3) \| Respond to of 2120

Sorry folks, I have been on vacation these last couple of days. I have worked out my list problems with my server and am ready to start sending my morning email advisory to all who want it starting next Wed. Remember the deal :) In my efforts to keep this thread viable you must first make a good post here to be eligible... and You must send an email to subscribe@mtrader.com Please do not post your request here on this thread, it only clogs it up. I want to keep this thread about "tricks of the trade". If you have already sent an email to the address above to subscribe... dont worry you have already been added to the list, so no need to do it again. If you have not to get this, you need to send one :) I would like to say something about this email I will be sending. First, I still feel a bit uncomfortable sending it to people who are non members of my trading room for the following reason..... I am worried that new daytraders will take this email in the light it was not meant to be taken. It is NOT a recommendation to buy and sell securities. It is NOT a step by step plan to follow blindly. It is NOT always the best course of action. It IS simply a rough plan, a basic direction to look and a framework of possible plays for the coming day. I posted a while back that without such a plan, you are more apt to get overwhelmed by the massive influx of data at the open and are more apt to follow the "herd" into a bad trade. WITH such a plan you are more apt to be more focused, less overwhelmed and make your OWN smart decisions. In this morning email you will sometimes see possible plays such as "open shorts" (where you short shortly after the open) or other plays that have all my criteria for a solid play before the bell, but once the market opens, something immediately changes making it a NON PLAY. This could be low volume, bad spread, news, excessive buying etc etc.... In my trading room, my staff and I, as well as 50 other sets of eyes all analyze all the stocks in this rough plan to determine if the stocks listed are still in play after the open bell. MANY are not in play after the initial open and are removed from the watch list. Other stocks pop up to be added. Several people have tried to simply play all the stocks on this morning advisory without even checking the stock out themselves, just blindly jumped in. :( Another possible problem is, I play very very specific high percentage niche plays, some exactly opposite from what other daytraders play. As a result, my entry and exit points are different than the standard daytraders play... What I am trying to say is.... IF YOU BLINDLY FOLLOW THIS ADVISORY YOU WILL MOST LIKELY NOT DO WELL IN THE LONG RUN. Please use this as a framework to learn to develop YOUR OWN MORNING PLAN. The best plan is one YOU develop YOURSELF, consistent with the types of plays YOU do, not someone else. Please use this as a teaching tool only to develop your own plan.... If you can develop such a plan YOURSELF you will find your percentages increase by large numbers, cut down on your low percentage trades and hopefully eliminate your "follow me off that cliff" trades. Print out your plan and keep it by the computer. Keep your mind focused on this plan but remain FLEXIBLE and open to changes. I am very interested in how the readers here use my plan or others to develop your OWN plan. I look forward to reading your comments here as you develop your own plans..... In addition, you will also get the wrap up message at the end of the trading day. I think you will find it usefull in learning how to put your own plan into action. I send out the morning email roughly 30 minutes before the bell. Sometimes due to server lag it is delayed and may not arrive until after the open, but I am working with my ISP's to limit this delay. To counter this problem for my room members I post it in the room first thing, but even if it is delayed it will help you develop your own plans. Again, please dont use this as a "blind leap" way to trade, use it to learn to make your own killer plan.....and to subscribe send email to subscribe@mtrader.com Good Luck Ken mtrader.com