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

To: Ken Wolff who wrote (1598)	10/12/1998 5:03:00 PM
From: Ken Wolff	Read Replies (2) \| Respond to of 2120

Continued 13:06] <Nesi> two more questions... waiting [13:07] <Nesi> please, save questions for tomorrow [13:07] <KenWolff> 10:08:29 actually if I see heavy buying anytime 15 minutes before the close and the market is conducive to overnight holds... I will buy early.. [13:07] <KenWolff> 10:08:52 Now... if these stocks hold these highs... the overnight gaps will hold more risk... [13:07] <KenWolff> 10:09:09 so I will consider that... market has corrected since thursdays bottom... [13:08] <KenWolff> 10:09:45 I consider people coming home from work and looking at their portfolio.... [13:08] <KenWolff> 10:09:51 what will they be thinking????? [13:08] <KenWolff> 10:10:05 because they are the overnight traders.. [13:09] <KenWolff> 10:10:13 Lets analyze them.. [13:09] <Janine> NVLS 28 1/2 [13:09] <KenWolff> 10:10:54 1. Gosh, my portfolio has gone up real well after scaring the hell out of me... Hmmmm.. I wonder if I should sell.. DELL is up again to 57 !! [13:10] <KenWolff> 10:11:21 and going down to 40 1/2 really had me and the wife sweating bullets.. maybe we should sell now.. [13:10] <KenWolff> 10:11:55 so that is what I consider to be the demeanor of the overnight market... [13:11] <KenWolff> 10:12:20 it can continue to run especially if Institutions smell a correction.. they are notoriously late in most market move.. [13:11] <KenWolff> 10:12:25 move=moves. [13:12] <KenWolff> 10:13:12 Next question.. [13:12] <Thomas> thanks [13:12] <Nesi> <melhop> Ken,I'm wondering about relaxing stops in this market. For instance Larissa and others seem to be doing very well with much looser stops lately. Can you comment? [13:12] <KenWolff> 10:13:42 You can do that melhop but reduce your shares... [13:12] <KenWolff> 10:14:02 and also please consider the trade... for example [13:13] <KenWolff> 10:14:35 If you do a dumb trade and buy RNWK at 37 1/2 seeing the nice momentum... would that be a good trade to loosen your stops???? [13:13] <KenWolff> 10:14:38 NO!!!! [13:14] <KenWolff> 10:15:45 but if you are trading early in the morning and have a big gainer that has pulled back like RNWK, 3/4 of a point...and you miss the bottom and get in 1/4 pt above the bottom.. then yes... go ahead and loosen up the stop... [13:15] <melhop> gotcha...thanks [13:15] <KenWolff> 10:16:41 I would really like to see you do it on paper first... [13:15] <KenWolff> 10:16:53 but this market is getting better and we should be doing better.. [13:15] <KenWolff> 10:17:09 not that we have done bad.. but the trading should be easier for you... [13:16] <KenWolff> 10:18:03 Just try your best to understand the momentum in the 1. Market 2. Sector 3. Stock (gathering in the news or reason for the momentum) [13:17] <KenWolff> 10:18:20 Next question??? [13:17] <Nesi> <Analyst> Ken, can you please explain the EOD sell next day, before open, at open or a bit after open? Second question : <Analyst> Next question on EOD gappers: Do they usually fall after gapping up and if so what are the considerations to buy again later? third questions :on EOD gappers: It seems like most of your picks lately have been the first day dumpers, are these the best to focus on or first day gainers can also be a consideration? [13:17] <Nesi> (dont kill me ken) [13:18] <KenWolff> 10:19:23 When I am riding a gapper overnight I begin to exit the trade about 15 minutes before the open... If most of the stocks are still climbing in price I will wait... [13:18] <KenWolff> 10:19:42 I will exit for sure about 5 minutes prior to the open... [13:19] <KenWolff> 10:20:22 If you have a Broker execution then for sure exit 15 minutes before the open... that will get you the open price.. [13:19] <KenWolff> 10:20:34 If you have a self execution... use INCA to get out.. [13:19] <KenWolff> 10:21:00 I think we can exit also using ARCA with MBTrading... [13:19] <Nesi> one last question waiting.. [13:20] <runner> Or selectnet right KEN? [13:21] <KenWolff> 10:22:18 Yes.. they usually fall after gapping up... I would say 90% of the time... the amount is up to the market and the reason for the momentum... You would always seek to buy a gainer... 2nd day dumper gappers... are iffy... I may buy them...and I may not.. [13:21] <KenWolff> 10:22:31 depends on the volume, pace and recent pattern strength.. [13:22] <KenWolff> 10:23:16 I don't think Selectnet is a good way to play pre market gappers.. [13:22] <KenWolff> 10:23:53 :on EOD gappers: It seems like most of your picks lately have been the first day dumpers, are these the best to focus on or first day gainers can also be a consideration? [13:23] <KenWolff> 10:24:22 It depends on the market... for example on Thursday I suggested holding gainers as well as this week end... [13:23] <KenWolff> 10:24:45 Now as I suggested earlier in the class... I will be more hesitant holding gainers overnight.. [13:23] <runner> Do you put ARCA market then KEN? [13:23] <KenWolff> 10:25:04 but I ALWAYS look at dumpers for gappers on the 2nd day... [13:24] <KenWolff> 10:25:18 sometimes dumpers will average you one dollar per day... just on overnight holds.. [13:24] <KenWolff> 10:25:36 I would try INCA first.. then ARCA.. [13:24] <KenWolff> 10:25:47 You can ask Ross which he considers to be best.. [13:24] <runner> Thx KEN. [13:24] <KenWolff> 10:26:08 Selectnet is more used between market makers pre market.. [13:25] <KenWolff> 10:26:26 that is my understanding.. [13:25] <KenWolff> 10:26:32 last question?? [13:25] <Nesi> <whaleman> Ken, I am having difficulty with stops during a WINNING trade. I will move it down as the trade becomes more profitable. I also will bail at the first sign of a reversal, scared to lose my small profits. I am always out too soon. What is a good formula to increase the odds of maxing gains? [13:25] <KenWolff> 10:27:05 first whaleman ask me the short and longer term targets.... [13:26] <KenWolff> 10:27:19 I am fairly good at considering and hitting targets... [13:26] <KenWolff> 10:27:42 Next consider the price that makes the trade worth while.. continued