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.

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

To: Joe Copia who wrote (10447)	6/21/1998 9:38:00 AM
From: LastShadow	Read Replies (1) \| Respond to of 120523

Position Trading Account The account I will start on Sunday, June 21 will operate as follows: 1. Equities will be chosen based on the net's assessment of high profitability via swing trading. 2. Once an equity is listed as Long (a buy recommendation), the accounting will assume that one enters at open at market price the following day. 3. The method is geared toward end-of-day traders rather than intraday traders. If one trades these picks intraday, the suggested method would be to assess the market price for up to 30 minutes prior to entering and go long when an improved bid or bid/ask spread occurs for 6 transactions. If you don't know what this means, I would recommend just buying per item #2. 4. I will not short a stock until after I am Long on it. 5. There will be no intraday updates. Account performance will be posted on the weekends. 6. The terminology is as follows: a. Long (first time) = Buy b. Short = Sell (exit long position) and then Short - if you don't short, wait for next buy signal c. Long (after a short) = Buy to Cover and then reBuy 7. The model assumes either a $0.125 to $0.25 slippage for bid/ask spreads and accomplishing dual transactions, such as Exit and then Short, or Buy to Cover and Buy again. Actual slippage, of course, will depend on the specific stock buy/sell. 8. All trading commissions are at $15 for an enter or exit. This may be slightly understated at first, and I will adjust as actual costs occur. 9. The model assumes a 1000 share buy. I do not recommend anything smaller than a 300 share buy, however, for reasons of both trading cost coverage and "all or none" lot size transactions. 10. I will not average down or up on any play, although an intraday trader may wish to do this to obtain best average price. 11. I strongly urge everyone to paper trade this Account until you are comfortable with the posts, return and process. 12. One thing I will NOT do, unless specifically requested, is make explanations as to why the stock went down or up when I posted the opposite play, unless specifically requested. 13, The method I have tested indicates I will be making 3-4 trades per month per stock on average. However, there are periods and stocks when 6-8 trades may be recommended. 13. Abandonment - if a stock starts oscillating too frequently (where it is just good for real time daytraders) or flattens out, I will exit and not continue playing it. If the stock resurfaces as a viable play, it will be under a new trading model and should be treated as if it had not been played before. 14. Price range of the stocks chosen will be in the $5 to $50 range. Although I will buy 1000 shares of each, another risk management method is buy and similar dollar amount of equities - say $5000 of each stock for 5 stocks, with a maximum of 1000 shares and absolute minimum of 100 shares. 15. If you short and the trade results in a loss before the buy to cover trade, one may choose to wait 30 days to reenter or play the reversal for a wash sale. This is a personal choice, and if you are unsure, I would recommend waiting for 30 days. 16. This account, as everything else in the world today, requires that you do your own due diligence. Past performance is not indicative of future performance. That is a true for your own paper trading as live trading. If you don't like a stock, even if that is just because its the wrong product or industry or timing - don't play it. If you think there is viable news out or upcoming that I or others should be aware of, please post. I am not able to stay aware of everything. 17. This account will be managed differently from previous ones in that one need not take a position is several equities, and may chose to trade only one or two. 18. I may or may not play everything. I do not short regularly, and I have other accounts to play for the watch lists. However, if I am able, I will make every play. 19. The account is tentatively scheduled to be suspended on July 16. Things may change by then, and I might be able to continue it through the end of July if I can get a remote process set up to run the nightly analysis while I am on vacation. There is some risk associated with attempting that, so I will keep you aware as that time gets closer. 20. One final note - Your input and suggestions will only make the process better. I respect everyone's comments regardless of trading skill, experience, or knowledge. No one on this thread has ever criticized someone for asking a question or making a suggestion. And there is no such thing as a stupid or naive question. The object is to share. Scott McCormick AKA lastshadow