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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (1614)	4/19/1999 8:57:00 PM
From: Eric P	Read Replies (1) \| Respond to of 1729

To The Thread: Strap on your seatbelts! It looks like things are going to get even more volatile and wild rather than settle down anytime soon. This will be a risky time to be a daytrader, but perhaps an even riskier time to be a buy and hold investor. For example, today I had a mediocre day, making a net ~$300 profit on 7 trades. However, the Nasdaq was down ~140 points (5%) and many good Tech stocks with good fundamentals were down 15-20% or more (ATHM, AOL). In times such as these, I sleep better at night knowing that my account is in 100% cash. The buy and hold investors have taken a beating during this past week and are probably feeling very anxious. Hopefully, the market will stabilize and not begin an ongoing selling frenzy, which would be very costly for the long term investors. A selling panic, I believe, would also demoralize and eliminate from the market many of today's traders/investors, resulting in substantially less volatility and less opportunities for daytraders in the months to come. The bottom line is this: The upcoming days could offer huge opportunities with the increased volatility. But, this is accompanied by a substantially increased risk. DO NOT allow yourself to be burned too badly by the inevitable share of poor trades in the coming week. Too many people have learned this lesson recently due to one or more devastating trades. Cut back on your position size as required to reduce risks. It may also be wise to give your positions a bit more room before stopping them out => the increased volatility will warrant this and the reduced position size will help keep this from being too costly. Good luck in the exciting days to come! -Eric

To: Mama Bear who wrote (1614)	4/19/1999 9:23:00 PM
From: William W. Dwyer, Jr.	Read Replies (1) \| Respond to of 1729

".... or William saying the only way to succeed in the market is to stay away." Hold on, Barb....I don't think I ever said anything like that, I never said to stay away from the market. Quite the contrary, in fact. I have talked and talked about how I position trade and do quite nicely. Been doing it for two years and, like you, I send plenty of good money to the U.S. Treasury. I gotta say your remarks seem rather arrogant, e.g. "Of course CDs are the right way to go for some people." Better get your facts straight, though. I bet I am into the market at least as much as you, possibly more. Bill

To: Mama Bear who wrote (1614)	4/21/1999 1:02:00 PM
From: dpl	Read Replies (1) \| Respond to of 1729

" I feel the stress at night when I try to carry positions. I know my cash money isn't going to gap down like CPQ, PDX, or ETEC." You and me both.

To: Mama Bear who wrote (1614)	4/21/1999 9:45:00 PM
From: Adelantado	Read Replies (3) \| Respond to of 1729

"...Joe, have you ever heard of short selling?..." I don't know why you think that there is any real difference between short and long trading, the first is selling high then buying low while the other is buying low then selling high, hopefully. Both are one in the same and depend upon guesses as to the direction of the market. Short selling in a rising market is just as stupid as buying in a falling market. As to day trading vrs. longer time trading such as buy and sleep stategies: its just a question as to how often you want to count your money. For me, day trading indicates an inherent lack of confidence in the trade, probably for a lack of knowledge. People who rely upon the peaks and pits of charts coupled with comical names for certain so called "techincal" formations to 'predict' the future remind me of the old shaman who could predict the course of any illness by the way knuckle bones fell in a circle. Frankly, technical analysis has about the same sucess rate and day trading on that basis will cause anyone to fall ill with time. Joe