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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 (599)	2/25/1998 12:24:00 AM
From: Ken Wolff	Read Replies (3) \| Respond to of 2120

INTRA-DAY CYCLES (Part I) In general, I've found that stocks react not only to news and momentum , but also to the TIME OF DAY. It is important for a trader to understand how the time of day can affect the way his stocks trade. Knowing these cycles can keep you out of a "sucker" rally that can turn on you quick. (to be continued...) Ken mtrader.com

To: Ken Wolff who wrote (599)	2/25/1998 9:58:00 PM
From: Dominick	Read Replies (1) \| Respond to of 2120

Ken: I am a successful investor, but a daytrading beginner,(one month). I have to learn all over again). The system that seems to work for me is getting the investor's bus.daily early A.M. 1- Circle stocks that I think will move on the news and get symbols. 2-Bring up a 1 yr daily chart and note the L.T., I.T & S.T. trends, support & resistance areas. 3-Write down stocks that meet my TA criteria (vol,price bar spread, signs of strength, weakness, selling climaxes etc). Eliminating those I can't afford. 4-convert chart to a 60 or 30 minute bars (daytrading L.T. trend). Then 15 min bars (I.T.) and then 5 min for the S.T. trend. Again noting support & resistance areas. This shows where the stock is in comparison to each of the trends. 5-Put 4 or 5 stocks on the screen and away we go! This method seems to give me more confidence as opposed to getting a quick news story then having to rush to look at a chart, T.O.S. or level 2 not knowing anything about the stock and make a decision in 5 seconds. I make hard copies of most of your advice and other contributors for trading ideas. The problem with the above is it requires a learning curve in both time & money. Since I am visually oriented, I could cut my learning curve in half or more if I could sit with a professional daytrader and see what he sees. Seeing the action & hearing the explanations in a sequential form, fixes the strategies firmly in my mind. I'ts the only way I learn best. Thanks for your contributions to S.I. Always a student, Dominick

To: Ken Wolff who wrote (599)	3/2/1998 12:19:00 AM
From: Darren	Respond to of 2120

This message is a compendium of responses to previous posts: My pre-market plan -- I have a "basket" of commonly followed stocks (my own modifications to the Red Herring 250). On one screen they are ranked by volume. Big volume, relatively, before open means action. News can obviously provide clues to direction. The other clue, for me, is what happens between 6:00a and 6:15a. If it's a pure guess, I usually go with a LONG position because volume is usually a positive thing, especially if I can't find any news. If I'm REALLY guessing, and I just can't lay off, I buy fewer shares. Regarding open, I'm not looking for a run bigger than 1/2. If it does go higher/lower, I consider myself lucky. I love to play the bounce on the "dumpers" I believe you call them. Only looking for 1/4 on the bounce, and then take the short until lunch is nearly over. I do like to play Hi/Lo, but I've been getting burned like crazy since the last double witch where the market tanked until 11:00a and then rebounded. Here ends my daytrading plays -- these are not to be confused with scalping plays or long term (i.e. 1 month) plays.