Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Dream Machine ( Build your own PC ) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Hanson who wrote (869)	5/31/1998 1:22:00 AM
From: Street Walker	Read Replies (2) \| Respond to of 14778

DAYTRADING STRATEGIES Here is a good review to start with: exchange2000.com My own strategies are less complex. My number #1 Daytrading Rule: Preserve Capital When you lose you're trading capital, you're out of business. So maitain tight stop outs. If I buy a stock and it is a lame duck, I get out asap. If it goes up, I'll let it ride a bit, but if it starts to "shake" I'm out with a profit. Traders who hold through shakes, lose money. You can always re-enter a trade after a shake. This is where real time tic charts are nice to see daily support levels. I monitor several news sources. A part of reviewing the news is looking at float using quote.yahoo.com "profile". The smaller the float the faster the stock will rise or fall. Smaller floats usually have a wider spread - which I hate - but that's part of the gamble. In such cases, I try to buy between the bid/ask. Before buying a stock that announces a monetary contract, figure out how significant this is compared to annual sales - look under quote.yahoo "profile". Know the resistance - I simply use a three month yahoo chart. If a stock is already, or very near resistance, I usually pass on it (unless its a "story stock" - viagra sort of thing). If I buy a stock and it approaches its 3 month resistance, I sell into the strength. Too many people are waiting to sell at the top, and they really end up trying to sell when the stock begins to down tic - ends up being costly. News before the opening bell: market makers usually gap the price up, then there is a sell off. This is where the novice trader loses a lot of money because they get caught in buying at the gap price. Instead, wait until it retraces to fill in the gap! Then buy if VOLUME starts to take it back up. Experienced traders will actually short the stock on the gap, cover their short after the first fall back, then go long! Learn to be a trader, not an investor. Keep track of stocks that have trader appeal. That means whenever any type of good news is released, the stock is going to go up. LOCK is one example, others are SCLN and SHVA. Pay yourself: when you make a ton of money on a trade, its probably best to take a few days off until you return to earth. This is both a reward to your self and helps preserve capital by not turning around and losing it. Take some of the profits and put in your bank account. This is mentally important to your spouse - that your efforts of trading are paying off. And of course, don't forget a certain percentage should go towards your church tithes or charity - this is important to your God, your community, your spiritual growth, and the example you set for the character development of others, particularly your children. Hope this helps, Street Walker