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

To: Pierre Borczuk who wrote (129)	6/6/1999 7:10:00 PM
From: TraderAlan	Respond to of 18137

Pierre, There's a difference in strategy depending on whether you're using direct entry or a discounter. With a discounter, you go with liquidity first, volatility second. With direct entry, you can ratchet down on liquidity because one of your advantages is to make a market between the spread but you also need the time to do it. Trading the mega-bigs doesn't allow this but a lot of mid-tier NASD 100 stocks do. For a general NASDAQ screen that gives liquidity, try top 20% only and put in an average volume filter in excess of 1M. I know its sacrilege but I don't like or trade most Internet stocks. I don't like the crowd nor can I control risk with the bid-ask action on the tape. As a TA trader, I don't look at anything on NASDAQ that isn't on the 100 and doesn't trade at least 1-3M/day average (over a 50 or 60 session MA). I've learned to stay away from the big four DELL, INTC, CSCO, MSFT. Always liked ASND, AAPL, AMAT, etc. I also trade a lot of NYSE but there are only a basket of stocks that offer the right characteristics (TXN, PFE, LU, EMC, GE, HWP, etc). The advantage is my fills are fast even in fast markets and slippage is low. News and conditions add and subtract to all my lists short-term. MMM was a great day trade last month. LCAV was fun last week. Even T is fun when it's buying something. Alan