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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (2111)	1/20/1999 11:27:00 AM
From: Frederick Langford	Respond to of 57584

I sure did, Thanks Rande! Fred

To: Rande Is who wrote (2111)	1/21/1999 8:54:00 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

To Newbies: Daytraders IRC is a trading room for militant daytraders that post their every move. This group buys together and sells together. And like I have said before, if your equipment and executions are not the same as the pro daytraders, then don't daytrade. You will be squashed by their precisely calculated and military style execution. Nine times out of ten, when they say they are buying WXYZ. . .and you look up the news or the profile to see why, then you decide to jump in. . .you just bought the high and they sold you their shares. Why? Because all they were interested in was that quarter point jump. Suddenly the stock is 10 percent lower than where you bought. . .then it moves lower than the open. . . and in frustration with the whole incident you dump . . or worse yet, you try to find reasons to hold. Either way, you have now become just another victim of daytraders. And that is why we here at HOME focus on swing trading the undervalued when nobody wants them and there is specific news or other circumstances pending. If you want to daytrade by "timing" the movement of a stock. Pick one with a large float, like IOM or CPQ or DELL. Then study the charts and the trading history of the stock. There are boards and chats and books devoted just to watching certain signals that trigger highs or lows for specific great daytrading stocks. Leave the low float stocks alone in a true daytrading / momentum situation. Many here would agree that there is more money and less risk by incorporating our swing/position strategies. Daytraders calculate loss as part of winning. So the gain is the NET. Yet they often post just the winnings. . .making it seem like easy money. Some like the rush from the super fast pace of dropping 10 grand into a stock for 30 seconds then selling for a 400 dollar gain. We prefer the slow route. Buying up a stock at 1.50 and selling it at 8 dollars. The returns are generally bigger, there is more time to make decisions, you can increase or decrease positions as is seen fit by daily moves, you can keep a portion aside for buying the dips and selling the peaks and as your confidence increases in the stock, you can increase your position for maximum gains. Best of all, when selling. . .we don't just jump out like a daytrader. We take increasingly smaller positions and often hold "free" shares really long [by removing original investment], should even BETTER news be down the pike. By doing this, we are a position trader. . .a daytrader and a shareholder all rolled into one. We learn the ins and outs of the companies we trade [unlike daytraders that only know the symbols] and we learn to predict future events that shape our trading, by both learning from the histories and by extrapolating events. For example, Number Nine looks like a good stock for SGI to buy, due to the deal that they struck on monitors. But SGI is still recovering from a large debt situation, so it may take time. Likewise, ARTT owes Lucent some large amounts of capital loaned to them to get their wireless broadband system launched in some major cities on the West Coast. Soon Lucent will want ARTT to pay back. . . or Lucent will simply make a takeover offer to ARTT. We want free shares in these, should a sudden announcement be made and they stock triples overnight. So before you think about which stock you will trade next. . . . consider which trader type you are. . .then be the BEST at that type of trader that you can be. In the market, as in many other areas. . .it is a dog-eat-dog world and only the strongest, fastest and smartest survive. When someone tells you to buy THIS. . .it is usually because they are getting ready to dump a bunch that they have. If someone tells you to sell THAT, it is often because they turned short and sold at the high, hoping to cover [buy] at the low. Likewise, an analysts upgrade is sometimes a sell signal and a downgrade a buy signal. Stay on your toes, greed will kill you, trust nobody but yourself. . .and even keep an eye on them. Rande Is