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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (4314)	10/28/1998 9:04:00 AM
From: Pullin-GS	Read Replies (2) \| Respond to of 59879

Heres a strategy that I use from time to time that pays well (low risk relative to reward possibilities). I posted an example yesterday. It works better with the gizzards and beaten down stocks when going long. As most of us here know, from time to time a stock goes sky high (50%+ appreciation in a matter of days) based on good news, sector speculation, being "in style" at the moment, fear/greed, and short covering (a squeeze). EBAY is an excellent example of this. Being that EBAY is a recent IPO, trades at 50+ and is associated with the INETS, and was trading much lower just last week, I would have never considered going long. It is just to much risk in my book. I instead found an internet stock in the same business that has taken a beating lately with a chart that showed at least some hope. I then took a peak at it's products (auction web page) and a very quick peak at it's fundamentals (Ack!). This all checked out, so I went long. Other traders picked up on this, and fed ONSL's rise to 21 from about 15. I only caught a little of the upside, but it was a fine ride at that! Play the sector stocks as a proxy to the high-flying stock. Risk is much lower, capital required is less, and sleep comes better. I'm currently playing ONSL short now (as I expected a pullback EBAY as of closing yesterday), although I wouldn't recommend anyone here go short ONSL at this point.....it could go either way. Regards.....