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Microcap & Penny Stocks : WR, LB and Friends. NO HYPESTERS OR SCAMMERS -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Rumball who wrote (8809)	4/24/1999 2:14:00 PM
From: ciVic	Respond to of 13776

ECGC will definately go up now that W sold..PLUS I spend the better part of last saturday playing blackjack with my free account. Would be very scary to actually have $$ on the line....similar to some of the BB's we play maybe.. ciV

To: Wayne Rumball who wrote (8809)	4/24/1999 2:34:00 PM
From: Due Diligence	Respond to of 13776

From this on a Raging Bull thread. Interesting points made. Enjoying the weekend. DD To Daytrade or Not to Daytrade... The debate on whether it is better to DayTrade, Momentum Plan (Doubledown this is what your doing)or hold longer term a stock is a stupid one! You can make money one any of the above strategies if you know how to do it, have the time and the proper tools. Day Traders make money by flipping stock over and over again usualy making 16ths or 8ths and once in a while 1/4rs. but seldome 1/2s or dollars. They try to make gains on the spread. To do this they have to trade 10s to 100s of times a day. Often sinking most of their money in one or two stocks at a time only. by the way to whomever said daytraders cannot effect the stock price, Your nieve!.. I can maniputlate the stock price on any stock under 5.00 if I enter declining or advancing bids on 100 share lots. MMs do it every day as do Day traders. With a $100K wartechest you bet I can change the momentum on a stock thats not already in strong play (meaning trading at a rate in excess of 2X ADV) You need some heavy duty tools to do this well. You need direct market access to SOES, and most of the ECNs, good charting software and news feed, realtime streaming quotes, Level II is mandatory and LEVEL III is better if you can get it and nerves of steel and at leat a $50K account. DayTraders could care less about the company or management. They are looking for technical spreads that ar consistant over time and momentum and Sector plays. Intermediate or Momentum playing is when you Buy a stock and hold it beacuse you think it will appreciate soon 1 day to a few weeks. Often player who do this Buy a position sometimes over a few days on a stock that is appreciating. When it reaches their strike price they sell the positions and wait for the pull back to buy back in. Often the swings narrow and after wo or three plays the range is too narrow and they move on for a week or two. Again you can make great money doing this. Nothing wrong with it and you don't need the tools a DayTrader needs to get those trades off. Any online brokerage will do. Level II data really helps but you could get buy with just the Time & Sales data. It helps here if you know something about the company but it is not really that necessary. You can always get good tips for these companies based on rumors and news. If you have heard about it on a board so have 1000s of others and the company will have some play. Long term Investing... This is where you research a company and you buy because you believe in the management, the technology, the market opportunity, etc.... You do your homework and you buy the stock and hold for at least a year. To do this you need a newspaper and a telephone to a broker. All of these work all are acceptable both to short the stock and to go long. Each just requires a different temperment and different dicipline. You can make money at each. And most of the relativly newer Internet investors are actually a combination of Intermediate players and Investors. Where most players today get burned is not knowing the difference and using the wrong strategy with the wrong techniques or tools. Reading these boards a lot of people buy based on momentum then start to consider the stock a long term play because it dropped, then when it goes up they get greedy and go back to the stock as an intermediate play and sell only to see it go up more. Also Investors see a momentum (Intermediate) play and start to do lengthy DD and by the time they are convinced it's a good stock and buy the trend has run it's course. Then the stock pulls back they panic and sell. I keep a hardbound diary of all my stock trades, before I buy a stock I write what catagory it is and then I take the appropriate action on the stock. I don't do two days of dd for momentum plays, I do a quick look and then check the chart and try to figure out the buy price. I write it down and at the same time set my out price. If it's an investment then I take the slower approach and put in my long term out price or the date I will review the stock again then I don't follow it day to day. More often than not after the Intermediate Investment, I find some reason to hold longer then I sell 50% or so of teh position at the strike price and hold the rest longer. This helps me. But as I say everyone is different. Arguing about day vs intermediate, vs long term is like arguning how many angels fit on the head of a pin. What work for one won't work for another. To each his/her own. And good luck to all!