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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (1857)	11/8/1998 6:05:00 PM
From: TraderAlan	Read Replies (2) \| Respond to of 7382

Daniel, Depends on your need for speed. One way I control my losses is switching to slower stocks when I hit a drawdown. The ones you mentioned sometimes have good trading properties. If you haven't noticed, MER's done almost 100% in the last month. I'll make an odd statement but I think NASDAQ's a more honest market when it comes to the technicals. Might be because NYSE stocks are monopolized by a single specialist. If they are sharp on TA (and many are), they'll intentionally drive price through violation points just to grab the volume because they know the TA types will show up there. That type of focused manipulation is less likely on NASDAQ since MM motivations are often in conflict. I think TA works with slow stocks and fast stocks and in all time frames. But I wouldn't use it on thin issues due to the chance of manipulation and wide spreads that can trigger buy/sell signals all by themselves. Utilities show real nice support/resistance and trend/range movement. So do charts of mutual funds, which are baskets of stocks and other financial instruments. Generally I'd stay away from real slow days on any issue. The noise to signal ratio is way too high to make any sort of price prediction. Even MSFT and DELL can get real dull during holiday trading. Alan

To: Nazbuster who wrote (1857)	11/8/1998 6:06:00 PM
From: Rick Faurot	Respond to of 7382

Daniel, At the risk of being a thread-hog: I avoid low volume stocks for a couple of reasons. One is I hate to tie up funds for hours when I could be jumping in and out of some better paced trades. Two, a low vol stock can go the wrong way real fast at times. Because it takes so long to move you tend to get lulled to sleep on it and then, Bang! you've got trouble. I've seen guys trade low volume stocks well by using FA and TA and news stories. It is kind of a specialty type of trade. But you are usually going multiple days to cash in, which can be okay if you don't mind the wait. One of my friends on mIRC would take a position for a week based on TA and pick up a point or two. That's real money so you can't sneeze at it. Just a different game from daytrading. Rick