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Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (24627)	6/9/1998 2:43:00 PM
From: MoneyMade	Read Replies (1) \| Respond to of 34592

Word of Caution... To: xray (3176 ) From: steve goldman Sunday, Jun 7 1998 10:28AM ET Reply # of 3193 From the Momentum thread... Daytrading? I personally think its fool's gold. One in 30 can be successful at it. Most simply lose their principal and many do it miserably, that is some have the discipline to watch 100k turn into 70 and say "thats it!, i tried, its not for me" and others double up,buy calls, go nuts and turn 100k in 10..thats no good, thats not discipline.Some do make it. I have known many good day traders and all have the following: 1. Rock solid discipline 2. Emotionless about losing 1/8s and 1/4, never loses more than 1/2 or more 3. Great eye for movement. 4. Understands execution systems up and back 5. Understands that losing is part of the game. 6. Knows when they have gotten it wrong, sells the positions and would go the other way in a blink. 8. Has that intangible gift which makes them successful, meaning I have known people who have 1 through 6 but just don't get it done..usually because of some falter in #1 and #6. The daytraders that fail usually have 3,4 and 5 but when losses come, they see it acting well, they think 'oh, it just has to turn somewhere' and then they slip on 2 and never execute 6. Remember, when you are daytrading, a) you are at a disadvantage because you have to overcome the spread to make money (not that doesnt apply to all investing) but that you have to overcome it in a short period of time...very doable. You are also trading against the best traders in the world, and I dont mean the day traders..i am talking about the market makers at Goldman Sach, Merilly, Paine, SmithBarney, all with incredible experience, vast capital, client orders on the other side to work against, the NASDAQ Workstation Level3 which lets them up or down their quotes->the ability to make the market, a knowledge of how many MORE shares their large mutual fund has to go, and the fact they arent trading their own cash....its a lot to overcome. Its like a casino...the market makers are wiling to allow the one in 30 to be successful so they can win on the 29 of 30. There is always someone at the end of the nite who has a big stack of chips and inspires others... Me personally, I have done the daytrading thing. At times, I still daytrade..when, how often?..maybe 5,6 times a week, I'll go after a trade knowing that i'll be out in 1/2 hour..usually some ridiculous excess the market expereicnes...but personally, I think the money in the markets has and will continue to be made in sound research and analysis, longer term investments and for the more aggressive investor, position and day trading...that is forget about the 5 inute movement, but go out a few days for a sector move, etc.. Regards, Steve@yamner.com I hope this helps! MoneyMade