To: Kimberly Lee who wrote (662 ) 4/22/1998 9:50:00 AM From: Matthew Cooper Respond to
Come on Kimberly! I know you are smarter than that, I have read your past posts. Perhaps you don't understand the concept of multiple accounts, daytrading and hedging. I would think you do, but since your message reveals a lack, or disregard (which is it?), of this knowledge I will attempt to explain it to you. First of all, I am a daytrader. I place about between 25 to 50 trades a day. Do you want me to post every single one? Why would I do that? That would be thread clutter. If you read those messages in context you will see that people ASKED me what I was doing AT THAT TIME. So I answered them AT THAT TIME. As for your figures on trading, why did you assume I covered my whole position on 4/14? Many investors utilize a process called averaging. This is accomplished by (let's use LEAP as an example) say shorting at 7, then covering at (if my memory serves me correctly) 6, 5, 4, etc. If you short 10K at 7, it is best to cover the short in blocks at different levels, thus minimizing risk and maximizing profit at the same time. This is covered in many investment books. I highly recommend learning this, it will make you a lot of money and shield you from risk. Another technique (not as common) is hedging using two (or more) accounts. In other words, if you are trading a highly volatile stock, such as SEVL, you short it in one account and go long in another. If it looks like the stock is going to rocket, you cover you short account quickly, but stay long in the other. And vice versa. Or, like I usually do, wait for the dips, cover your short, then wait for the rise and sell your long position.
