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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: NewKit who wrote (3250)	12/6/1998 12:25:00 PM
From: James Strauss	Respond to of 13094

NewKit: CNKT was the beneficiary of the E-Commerce mania... Normal rules don't apply... If you're up 50%, 100%, etc., in a short time, say thank you and get out... It may double again, but don't second guess yourself... Just be happy you made a quick profit... Normally the first hour of trading is the most liquid part of the trading day... Stocks usually hit their daily highs or lows in those first 60 minutes as buy on open or sell on open orders are executed... So, a good strategy is to sell into an up move into the first hour... Or wait beyond the first hour if your stock is going down... The selling usually subsides and you get a better price later on... Some people even use this time to pick up hard hit stocks in the first hour to sell them for a quick profit as the price recovers... As for using the first 15 minutes to make a decision... You'll have to try this on paper on a stock by stock basis before committing real money... Some stocks may conform to this pattern, others may not... If the stock gaps up strongly I would put a stop below the opening price... You want to give yourself a little room so you don't get caught up in initial profit taking and give yourself a chance for a second wind run to higher prices... If you don't get that second run up, you've still made a nice profit while being protected... Many traders place stops at the previous day's high... So you may find yourself stopped out with the masses... If this is purely a trade, you may want to put a stop slightly above the previous day's high to assure your exit before the crowd... If you are investing in the stock for more fundamental reasons you may want to put a stop slightly below an intermediate term support line... Jim