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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: papi riqui who wrote (7859)	4/17/1998 2:43:00 PM
From: Jenna	Respond to of 120523

MYL very bullish on it.. It was on my watch list a few days ago. and I think I gave up for a while 'cause the earnings date was off. I'll have to recheck it again. I make 4-5 plays a day sometimes 1 more.. 75% of plays are in the money options.. 10 calls on average and a price of about 1-3$ a call usually.. sometimes more. I sometimes double to 20 calls if it's a trade I've made lots of times before. About 15-20k a day for options is about it.. but the leverage equals hundreds and thousands. that's a part of my trading portfolio.. I like to be mostly in cash again at night.. At least the stock purchases I'd like to get on in the morning and get out either after a few hours or the following morning. I don't scalp for under 1/2 point and usually have a goal of 1+ on each trade including options. The rest I sometimes splurge and buy 600-700 shares of stock, never above 65 and mostly between 11-40 a share. Once in a while I'll buy 1,000 shares of something good but usually don't hold it overnight. So you don't really have to have that much to make 5 plays a day. Mostly I don't daytrade options but buy for a 1-3 day hold.. Thanks to some good market momentum lately I've been holding my options up to a 3 weeks.

To: papi riqui who wrote (7859)	4/17/1998 3:09:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 120523

Response: I never buy less than 300 shares of anything, regardless of price. My largest single holding was 10,000 shares of CPQ, but the largest single buy was only 5k shares (not counting the 50 or 100k shares of penny stocks that Copia forces me...lol). I have bought stocks that ranged in price from $0.25 to $100.00, but the averag is about $12-15 I would guess. The 300 share minimum is for two reasons, one, the stock only has to move 1/8th to cover trading costs, and secondly, if it drops and I want to average down, I can do so for 500 or 700 shares, which for arcane mathematical reasons works out very well. My average buy is usually about 1000 shares, and I rarely buy stocks costing more that $40. The reason for that is the % gain. There are lots and lots of stocks worth $75-$100 bucks that can move $1-5 a day, but if you are buying the equity, it is much more profitable to buy less expensive stocks that make the same $ gain. For Jenna and the others doing Options, the opposite is true. A $1 contract option price gain is much more profitable than buying the stock. I only made 147 trades last year, and I am runing 1/3rd less than that this year so far, although that is mostly because of the Position Trading Account which by its nature trades less frequently, and is using the funds I normally reserve for small caps. The criteria for Risk Adversity is specific to the individual, not the trading process. Decide on your own level of risk tolerance, and then gear your trading frequency and method around that. lastshadow