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I would be interested in hearing any suggestions for day trading internet
stocks or similar volatile stocks.
I've been watching with interest the mania in internet IPOs. The volatility
of these securities, even after the IPO is significant. I've been tracking a
group of internet stocks (most are unseasoned, less than 1 year since the
IPO) and am amazed at the volatility. There are few/none that I would own as
an invest. They are for trading - - greater fool theory. Most have
relatively thin volumes (part of the reason I'm not overly concerned about a
crash in 'net sector bringing down the market - - most of these stocks only
have a couple million shares of float - - compare that to a GE or Ford which
have a a billion plus shares outstanding) and driven by investors psychology
- - listen to the chat rooms, track volumes being traded via E*Trade (is
there away to track orders intraday being place through E*Trade and other
'net brokers).
Anyway, I would like to hear others re: potential strategies for trading
these - - keep it simple, nothing more complex than paper, pencil and data
from the Yahoo, NASDAQ and web sites. I had a couple of thoughts - - for
example, trading range breakouts, with increasing volume from the first 45 -
60 minutes of trading (would be a litte nervous trading the short side), with
a multiple stops - - a time stop, trailing stop after specific profit
objective (X% ave. daily true range).
Any thoughts appreciated. If you have not thought about trading these
securities/sector take a look at various "indexes" that track the sector - -
most are up 80%+ for 52 wk.
Also, are there any index securities, similar to Spiders or QQQ, which track
the sector - - would eliminate the risk (reward) or individual security
selection.
Looking to get on the train and (more importantly) off the train before the
other fools.
M. J. Mueller
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