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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 (895)	4/4/1998 3:59:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

MARKET DYNAMICS - 04/04/98 When I was a small boy my mom would always tell me to eat what was set before me. Little did I know at the time my mom was setting up a good daytrading mentality. If you visit many daytrader chat rooms you will learn very fast that they concern themselves with what a particular stock will do next week or tomorrow. I continually read their comments on how they wish they had HELD some stock they were playing last week because it got bought out 6 days later and they could have made fantastic money. It seems harmless chatter until you really think about and understand how daytraders make their tremendous returns (for the successful ones) and what this type of psychic nonsense does to the mentality of good trading habits. I feel that the guessing game regarding stocks exhibited by so called daytraders is a creeping to the dark side of daytrading, INVESTING. The next time a daytrader is about to exit a postilion, he is hit with last weeks stock that was bought out and he has another mental force that says, "MAYBE IT WILL GO UP LIKE XYZ" when in fact the trade is going against him and good trading habits screams, "KEEP YOUR STOP!!" One moment of hesitation for a daytrader in a volatile (but potentially profitable) stock can mean an eternity of Investing and hoping you can claim some money back from the trade. It irks me to no end when traders make money on sloppy trading habits because it only engrains "bad habits" that will kill them in the end. This Market is in such a nice bull rally that sloppy trading is being rewarded much like last summer when NEWS momentum carried stocks up from the lows such that buy darn near anytime during the day led to good profits. Timing is less essential in this type of market but when the market changes (and it will) like it did last October sloppy traders lost their butts. Right now I am advising my group to "buy the first uptick" on any first day of good news stocks. Learn how to play the "dynamics" of the market and you will have a long , successful, and happy career of daytrading no matter what the market is doing. I am going to attempt with my limited amount of time to elaborate on exactly how I change with the market flow in subsequent posts. I will be dealing with the following: 1. Finding the Market you are in daily. 2. How to play a strong Market a. gapping b. news c. gainer action 3. How to play a weak Market 4. Reversing Positions 5. The different types of Gainers Good Luck Also, if you would like to receive my free daily market advisory, please dont send me email or post it here... just send an email to subscribe@mtrader.com Makes it easier for me to keep track and ensure you make it on the list as there are hundreds of daytraders on this list. Thread seems to be dying out a tad bit here and topic migrating. Was wishing more experienced daytraders would contribute and post their "techniques, patterns and tricks" here. Ken www.mtrader.com (C) MTrader