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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 (619)	3/1/1998 12:15:00 AM
From: lin huan chen	Respond to of 2120

Ken: First, I would like thank you for your efforts. I print all your posts and I will go through them this weekend. I am a great bridge player and good at black jack. I know all the probabilities of card distributions, and I am very discipline. Day-trading is my kind of game although I have never tried it.After reading all your posts, I have a very fundamental question: Is day-trading a zero-sum game? If so, who are my opponents? MM, other day-traders, big players..What kind of traps my opponents usually set up against day-traders? Or they just give us a free ride and can't do nothing about scalping. Or you really don't care, you just follow your system. Thanks Lin

To: Ken Wolff who wrote (619)	3/1/1998 4:07:00 PM
From: Coyoti	Read Replies (2) \| Respond to of 2120

Speaking of overtrading... I did my month-end assessment today...January was great...account up 30%, and my primary focus that month was on keeping my stops to an eighth or less...i only was hitting 4 out of 10...but do due my severe stop discipline, i made good money. This month ,however, i began experimenting w/looser stops to accomondate "market noise" and "Marketmaker Jiggle"...and now...I'm only up 15% for the year..<sheepish grin on a coyote face> Lookee: 88 Trades in Feb (i feel like i overtraded by 15%); 38 i got out flat to -1/4, 5 i got out -5/16 to -1/2, 12 trades out -9/16 to -1pt., and 4 trades out -1 to -1.25....the rest of the trades were 1/4 to 1+ point winners... So if i figure i took an 1/8 loss on the 16 worst trades, instead of the average of 7/8 or so, i would have 10+ more points retained in my account for February than i do now! That's a nice chunk of money..expensive lesson :-) ...Moral of the story: The hell with market noise; keep your stops to an eighth or less, with a willingness to re-enter the trade. The first small hit always turns out to be the easiest to swallow. Play the high percentage trades Ken speaks of, and the money will follow. Oh..and like Ken also suggests, keep the experimenting to paper ;-) Hope this helps someone -Coyoti

To: Ken Wolff who wrote (619)	3/1/1998 11:13:00 PM
From: Darth Trader	Read Replies (1) \| Respond to of 2120

DT's rule #12 To avoid over trading commit yourself to 1 hour of aerobic exercise for every trade entered. You can never be too rich or too thin.

To: Ken Wolff who wrote (619)	3/3/1998 9:47:00 PM
From: John Sanderson	Read Replies (1) \| Respond to of 2120

Ken do you have any rules or set patterns for stocks that lose or gain 50% or more in one day? Seems like the 20% rules would not apply. Thanks John