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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (15)	6/5/1999 8:27:00 PM
From: Eric P	Read Replies (1) \| Respond to of 18137

KM: I trade out of a rented office, not a daytrading firm (or from home). As far as scanning techniques, I think I look for the same things that others look for, only I use a computer to find them. There are advantages and disadvantages to this approach. Advantages 1) By using a computer, you can literally scan every Nasdaq stock (I review every one of the 5700+ Nasdaq stocks after every trade or MM update in the stock). 2) It makes paper trading easy... Just let the computer do it! At times in the past, I have had 30+ different trading systems paper trading simultaneously during the day, resulting in thousands of paper trades each day. 3) You can be very, very, very structured and reproducible in your trading. The computer has absolutely no emotions, and will draw the same conclusions every single time, given the same data. 4) SPEED. I couldn't hope to analyze any single stock as quickly as the computer can analyze every single stock. Disadvantages 1) It takes quite a bit of computer power. I am upgrading my current 500 MHz DEC Alpha computer (768 MB of RAM and 2 MB of cache) with a new 667 MHz DEC Alpha with 1.0 GB of RAM and 4 MB of cache. The new computer will arrive this next week. 2) Since you are dealing with the 'generic' stock, you cannot easily build into your scanning the individual nuances of how DELL specifically trades, or what it means when the GSCO market maker of CSCO jumps to the top of the bid with 2000 shares, etc. In short, by scanning all stocks, you cannot put too much knowledge into the detailed understanding of any one stock. 3) It can be more difficult to get a 'feel' for the market, since you may not be focusing on the data as carefully during the day. -Eric