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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Kris who wrote (1353)	8/2/1998 2:01:00 PM
From: Rick Faurot	Read Replies (1) \| Respond to of 2120

Kris, Any stock in play can be dangerous. WCAP I believe came off $1 when its connection to COOL came out. So it was an internet/ipo play--very dicey. For beginners, the problem with any hot stock is seeing the huge rapid gains these stocks can make. AMZN will run up two or three bucks in a minute. Likewise XCIT, YHOO, etc. Smaller stocks can do it too, of course. As you noted, WCAP cleaned a lot of clocks on Friday because the COOL ipo got delayed so late and then only ran up a little. People were loading up on WCAP in anticipation of a huge run, but then the modest runup on COOL was interpreted as a fizzle and WCAP ate the cookie. But even before the COOL ipo hit, WCAP was unusually jumpy and this should be a warning to anyone. If you have some risk capital to set aside, it is okay to try this type of stock. Most of us can't afford to lose two or three bucks a share on a trade. The old familiar rule is beware of big spreads and rapid spread changes. This is usually a sign of MM manipulation and therefore trends will not be defined and playing into total unpredictability is like flipping a coin. Rick

To: Kris who wrote (1353)	8/2/1998 4:37:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

Kris, Yes, the cheaper stocks are more "dangerous" as you put it.. I call it momentum and play the swings. there are two extremes, investing and daytrading. I tend to sit with the daytraders. I also stay away from the fast fast movers, low volume stocks and slow movers... I am comfortable right in the middle. The example you noted how lots of people get caught up in #DT is a prime example of the herd mentality and that very steep cliff that tends to collect traders at the bottom. Good Luck Ken www.mtrader.com