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: Ken Wolff who wrote (519)	2/16/1998 2:42:00 AM
From: Jason Dekker	Read Replies (2) \| Respond to of 2120

Ken, I am a trader myself and I think you have a lot of helpful hints to offer. My question is related to open shorts. I think the concept is a great one, but I am wondering how and when you determine your entry points on open shorts? As all traders know you can only short on an uptick, thus shorting into strength. If you are only willing to give up an 1/8 or 1/4 this might be quite risky, or are you more willing to take on more risk with these trades. I truly agree with you that most stocks that are big gainers or that gap up, retrace. However, it often takes them up to 5-10 minutes and sometimes longer before they start falling, and that could mean risking a more than an 1/8 or a 1/4. Also, some of these stocks just start falling from the open without an uptick. Could you please explain how and when you determine to short these stocks. Your insight is much appreciated! JD

To: Ken Wolff who wrote (519)	2/16/1998 11:07:00 AM
From: Pullin-GS	Read Replies (1) \| Respond to of 2120

Lets just say this one is open to discussion and needs refinement. At the moment I have no system in place, other that the fact I am heavy into TA. Often these stocks open to the masses with great technicals leading up to a breif run (3 weeks or so as I mentioned), but before that they are more or less just lateral moving stocks. These are the ones I like. The ones that have accumulation written all over the charts for a sustained period probably should be avoided. Also, the more gravy in the story (hype), the better. I'm sure each newsletter would be different. Let me know what you and your associates can do to pollish up "Short on Newsletter Hype Play". A good place to start is to collect some of the old newsletters with fresh (be sure they are fresh relative to the newsletter date, often is the case that an old play is "re-hyped".) stock recommendations, and peek at the charts. Mainly you are interested in price and volume....try to ignore the technicals, for they are often artificially inflated...especially in low float situations. Now for those stocks that meet the criteria, sometimes you get lucky and they are marginable (these guys love BBs)...if that is the case, then put them up on your watch screen. <G> As far as Senior Waaco Kid is concerned, he is on the very top of my list. I am not a professional trader...just part time in some mornings (always mondays), lunch, and some evenings. I'm gearing up for the inevitable (for the last 2 years). My day job satisfies all my current needs, so daytrading must wait. :-( Regards, Paul