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To: ron peterson who wrote (18621)	4/9/1998 2:22:00 PM
From: SJS	Respond to of 95453

OT (sort of): Daytrading insights... from briefing.com. For all you daytraders, maybe there are some gems here about the process and how you can benefit.... ____________________ DAYTRADER: The 59% advance experienced by Datakey shares (DKEY 4 3/8 +1 5/8) is an example of what occurs when a little volume is directed at a relatively illiquid stock. (See DKEY update on "In Play" Here's the scenario: thinly-traded company announces good news; investors wary of buying stock due to wide spread (in this case 1/2 pt); a few daytraders begin nibbling at the stock; volume increases slightly and price begins to climb; software used by professional daytraders picks up the stock. That is when the fun begins. To these guys, there is nothing better than a wide-margin stock with good news. They know that if they can jump in a get filled between the spread there will be anxious investors ready to take the shares off their hands.. For example, say the stock is trading with a $3.50 offer and $3.00 bid. The professional may SOES-in and buy the shares at $3.1875 and then turnaround and hit a limit-buy at $3.3125. At first glance, it may not seem worth the trader's time. But that particular trade would yield a profit of 4%. As more of these trades occur, the market makers begin to tighten the spread on the stock, which, in effect, opens the door for individual investors who were waiting to play the news, but were turned off initially by the wide spread. Just another example of why it often pays to demand a certain price for a stock via a limit order, rather than putting the market-maker's kids through college with a market-buy. If you allow them to, these market makers will gladly take you to the cleaners. Damn.....where have I heard that before about limit orders....<g>