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.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (76400)	11/4/1998 4:06:00 AM
From: arthur pritchard	Respond to of 176387

hi. i tried to outline how i do it. can you ask your question more specifically? and yes, i take some days off, but in the beginning i did not. if you follow the initial intensity of the method i described, you quickly get a gut for where things are headed. you need to have your own assumptions regarding all the stocks you think trade with dell; the market of course tells you when you need to adjust those. you need a very complete data feed, showing all the market makers; and yes, you need to stare at the action of the spread, looking for pauses when you might in. it becomes actually, a very simpleminded thing; things get tense when you least expect it--you can recognize program trading after while.

To: freeus who wrote (76400)	11/4/1998 5:01:00 AM
From: arthur pritchard	Read Replies (2) \| Respond to of 176387

hi again. it also might help you get interested in doing this, if i added that i never short the stock. for a couple of reasons. if you get into this, you will find that when it starts to move down intraday, it at times moves so fast, that you are fortunate to get into cash at the right time. also, i don't like the thinking that is required to be able to short the stock. for me, i have been able to get these high returns, just concentrating on when to go into cash, and not at all expecting to make money by shorting. another thing, you need to place your order ahead of the movement of the spread, sometimes way ahead, in order to even get an execution/fill. it becomes really automatic after a month; and you have to able to afford losses as you get your technique together. and you actually need to trade; that is, you can't say--ok i'm buying now--because you need to teach your brain that the system will actually DO what you THINK it should do--that is, the market maker giving you favorable fills. I DO NOT advocate trying to beat the market makers; i have been happy paying commissions even at schwab rates, because my trades get done at such great prices--the mm almost seems to acknowledge on my largest trades "hey, here is someone who really follows what's happening--and I'll do that for him/her and still make a profit." btw, i would not try "my" system with any other stock that I have seen. i think what i do only makes sense with dell; my risk is lowered by the huge volume, and of course, the incredible quality of the company etc. whenever i do make a mistake picking the bottom--that is i'm long all the way down leveraged, the action of the stock bails me out. i might even get a margin call, but in general, the damn thing comes back fast enough to save the day. i have made two major mistakes--both involved selling 30 minutes too soon--went into cash on both instances, and by doing so, released my very favorable leverage, and had to get back into the market with half the shares i controlled before selling. so i'm trying to get tougher and not sell at all, if i don't sell as it turns downward.