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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 (687)	3/14/1998 9:54:00 AM
From: Ken Wolff	Respond to of 2120

THE ART OF TRADING I think trading is much like going to the dentist. You must accept the pain (nerves and adrenaline) to be able to buy stocks. Many traders will look for any excuse to NOT trade to avoid the nerves. I have said to my students that you must have a balance between "NOT GIVING A DAMN" and "SCARED AS HELL". Not giving a damn facilitates the easy buying and the scared as hell facilitates the sell. I have encouraged scared traders to trade reduced number of shares until they could control the nerves and get into the RHYTHM of trading. Ken www.mtrader.com

To: Ken Wolff who wrote (687)	3/14/1998 10:02:00 AM
From: Ken Wolff	Respond to of 2120

THE MOST CRUCIAL TIME (PART I) The most crucial time for the daytrader is when he/she is first into the trade. We hope that our loss criteria is NOT triggered, shaking us out of the trade early on. The worst trades are stocks that shake us out but quickly go back up and not allowing us to rebuy the next bottom. I purchase a stock when I am sure to clear my spread. This is usually true if there is heavy buying and very little selling. (continued...) Ken www.mtrader.com

To: Ken Wolff who wrote (687)	3/14/1998 10:11:00 AM
From: Ken Wolff	Read Replies (2) \| Respond to of 2120

THE MOST CRUCIAL TIME (PART II) As soon as I place my buy I will wait for my broker to confirm my trade. You need a broker that can confirm very quickly. Once I receive confirmation of my trade, I will exit the trade when I see a PAUSE in the upward rhythm and a couple of sells. Many times you will have to go with the flow of the market and sell fast as some markets will give you little time. I try to limit my losses to 1/8 of a point and that is why I only deal with those stocks that have spreads less than 1/8. You could always place a limit buy BETWEEN the bid and ask on stocks with 1/4 spread but I have always found ample opportunity with stocks that meet my criteria. Ken www.mtrader.com