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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Randy Majors who wrote (1880)	3/21/1999 9:42:00 PM
From: William W. Dwyer, Jr.	Respond to of 2120

Randy, You're trying to buy immediately "after" the bottom, while Ken tries to call the exact, precise bottom but often is only able to announce it slightly afterwards, the way you do. You are trying to be just a bit more conservative than Ken, but both of your methods are inherently risky (as is every trade) because, no matter how conservative you try to be, the uptrend, either Ken's or yours, can end abruptly at any point and reverse. Nothing is guaranteed. Stocks can and do often have multiple "bottoms" before a real uptrend develops, assuming it develops at all on the day in question. The difference in timing between your method and Ken's is very small indeed. You both have the same idea in mind. Bill

To: Randy Majors who wrote (1880)	3/23/1999 5:25:00 PM
From: Ken Wolff	Respond to of 2120

Hi Randy, <<Isn't that pretty risky? For example, in a buy situation, I have found it more effective to wait for the "bottom" to start turning up slightly (on high volume, with Level II looking "right"), and then to buy at the ask, and then moments (or minutes) later to sell at the ask (before the upticking has slowed too much).>> It's all a matter of anticipation and timing. I usually look for a PAUSE followed by INBTWEENER trades followed by BUYING to identify a short-term reversal of a quick sell-off. More conservative traders can certainly wait for an uptick confirmation before entering the trade. Ken www.mtrader.com