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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: jerryf who wrote (636)	4/4/1998 9:38:00 PM
From: The Devil Dog	Respond to of 25711

Absolutely!!! Best Regards WB

To: jerryf who wrote (636)	4/4/1998 10:10:00 PM
From: Israel	Read Replies (3) \| Respond to of 25711

Different Trading Styles Arbitrage: Involves the simultaneous purchase of a security from one market maker, or exchange, and the sale of it through another, and profiting from the difference in prices from the two market makers or exchanges. Example: DELL is being low offered by MSCO @ 89 1/8, and is simultaneously being high bid by AGIS @89 ¬ . By buying the stock from MSCO @ 89 1/8 and immediately selling it to AGIS @ 89 ¬ , you have arbitraged $125.00 profit. The previous example used an O.T.C. stock, arbitrage can be exercised on exchanges. CPQ is being high bid on the N.Y.S.E. @ 57, and low offered by P.S.E. @ 56 _ . In this instance you can buy CPQ on the P.S.E. and instantly sell it on the N.Y.S.E. and lock in $250.00 profit from the price differences between the two exchanges. Grinder: This style of trading is typically the most active of the different styles of trading. It is based on taking positions and immediately bidding or offering your position at a 1/16 or 1/8 above or below, locking in a small profit. Locking in small profits of a 1/16 or 1/8, 30 to 40 times per day can be very profitable, and satisfying. Market Maker: Typically this person tries to emulate the Market Makers. With this style you will attempt to buy on the bid side of a stock, and sell on the offer side of a stock. This can be difficult to trade in this manner. Position: A position trading style can be very lucrative. A position trader can often just be in one position at a time, but generally this position may be rather large. A position trader tends to be long or short one stock, but in a size greater than 1000 shares. A position trader will buy/sell 1000 shares of stock on the SOES system, wait five minutes or more, then buy/sell another 1000 shares, this is building a position. He may also choose to enter his position in one transaction. To achieve this he may buy/sell his intended position by way of an E.C.N. or Selectnet, where they are not restricted to the 1000 share maximum per transaction, and the are not subject to the five minute rule.