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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (4315)	5/27/1998 2:47:00 PM
From: TFF	Read Replies (2) \| Respond to of 12617

Another beautiful play called in #DAYTRADERS today. LOCK was played from 4 to 6 bucks....nice ride.

To: TFF who wrote (4315)	10/4/1998 1:33:00 PM
From: TFF	Read Replies (3) \| Respond to of 12617

#DAYTRADERS Chatroom Tips: Introduction: For those not familiar with #daytraders it is simply an online chat which is open to anyone. #daytraders attracts all types of traders. #daytraders is growing all the time and the influence it exerts becomes more evident everyday as you follow the ebb and flow of the room. Typically there are 600 people in the chatroom. The main thrust of the room centers around the identification of stocks which are poised to make large intraday moves (up or down) Traders' posts revolve primarily around breaking news from Briefing.com's INPLAY section, Reuters, Dow Jones, CNBC, Yahoo, and other news services. Often the basic fundamentals of the company will be posted from Marketguide( Shares outstanding,float,revenues,etc.) In addition there is a tremendous volume of post by traders commenting on these stocks once the room has began trading them. This is where the danger exists for the uninitiated. The pace of the room is very quick and many traders get caught up the energy surrounding a hot stock which has been identified and is being accumulated very quickly. The way to use the room is to use your own tools to identify those plays which meet your own criteria for good trades and to take the appropriate action at the appropriate time. One Good Play A Day: Typically each day #DAYTRADERS will have one good NEWS PLAY. This is what makes #DAYTRADERS worthwhile. Typically each day #DAYTRADERS will have one good NEWS PLAY. This is what makes #DAYTRADERS worthwhile. Today it was a call on AVNT. The NEWS broke and the room quickly analyzed the release and many traders bought the stock. AVNT ran up several points shortly thereafter. This phenomena seems to occur regularly . The potential NEWS PLAY can be anything from microcap to largecap stock. The key is to recognize the NEWS PLAY as having: 1) good potential to move the stock. 2) see alot of buying on the offer. 3) good follow up buying from traders in the room. 4) good follow up buying in the market. Typically you should sit on your hands for awhile until you can see the breakout occurring. Many traders rush into false breakouts and end up dumping the stock at a loss. Take your time and really look for the momentum to build behind the stock. Even if you miss a 1/2 point it will be worth it too know that it is a REAL breakout. Avoid The Open Madness: Whatever you do don't listen to people talk up/down stocks pre-open! Watching the manipulation of market makers on level 2 screens is bad enough without listening to alot of people with they're own agenda try to sway the room in one direction or another.Make you own calls! Do Your Own Homework: Anyone who has spent time in #Daytraders will tell you the fastest way to go broke is to act on every trade that is hot in the room. Every traders has his/her own agenda. Due your own due diligence before leaping into a trade. Here are some things to help you determine if a trade has good potential. News - Do you understand what the company does? - Is the news significant enough to move the stock and attract sustained interest so that you can exit with your targeted profit? - Is the news recent or is it several hours/days old? - Is it a repeat of a previous news release? - Is the news being picked up by major news wires? ( Briefing.com,Reuters,Dow Jones,CNBC ) Volume - Is it real volume or just one or two large block trades? - Is the volume increasing quickly? Price Action - Are the market makers simply moving the stock up briefly so that they can distribute stock to you at a pumped price? - Who is in control? retail or market makers? - Are traders buying on the ask? - What does the chart look like? is the daily trend down? Other - Are you late to the party? have traders in the room already loaded up before you? are they looking to unload for 1/4 or 1/2 to you? - Is the overall market an active market for traders? or are there very few plays making big runs? - What is the float? is it small enough that a significant run won't be diluted? - What is the insider ownership? are there any outstanding warrrants or options? - Who are the major market makers? There are many more factors to consider and you should be able to determine the majority of them as a matter habit - you better! because you know the OTHER traders will! Holding Overnight - Don't Believe The Hype! Okay you've identified a good story stock with good momentum and the room is as bullish as you've seen it. You trade it several times and now the stock is going into the close and you are long/short with no end to the momentum insight . Know What do you do? 1) Hold overnight for the gap up? 2) Blow it out at the close? The thing to remember when Day Trading is that you believe in momentum - not hype! If you answered number 2 you are probably on the right track. If you answered number one you better re-think why you are Day Trading. Holding overnight means that you feel confident in the hype and that you think that once traders view the news/fundamentals they will continue to buy the next day.Wrong! #DAYTRADERS Chatroom Directions: daytraders.org