Don's Openings, Part 6 2003

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Quote from astocktr8r:

Today, 3 fills-3 winners. Because of HIG's loss yesterday I only ended up with a small profit for the week.

Question for Don, You say you don't place stop losses because of the specialist and shakeouts, well what if you have a trading system that only sends a market order after the stock trades at your loss point so the specialist does not see your order in advance. If you had that type of system would you consider using stops?
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We have several of those type of "virtual stop" programs that people use...but I still don't think it's a good idea. It's not really a matter of the Specialist seeing the order, as much as the fact that the order will get triggered not matter what. Watch GE for example for a few mornings. It will open up/down...continue up/down for a few pennies and generally reverse (all things being equal)...you'll see what I mean.

Don
 
modified Quote from Don Bright's above post toTonySanDiego (with stipple-sketch):

...oops, picture's a bit big...
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Don,

Nice Wall Street Journal trademark hedcut / dot-drawing portrait!

The WSJ folks always seem to treat you well! :cool:







Now, if Dow Jones & Co., will just give your
even smarter, richer brother Bob his due
for continually mentioning the benefits he
and other traders and business investors
obtain from reading and utilizing Barron's.... :D
 
OK, net winners for the bootcampers from 9/15....

New group in today, we have 8 or 9 this time, we'll see how we do .......

Good Luck to "old bootcampers"....

Welcome to the new crew......

Don
 
New crew still filtering in ( a couple just passed their tests yesterday)....

We have modified the concept a bit, to adapt to the market place for this group....so stay tuned.

Don
 
Quote from Don Bright:

New crew still filtering in ( a couple just passed their tests yesterday)....

We have modified the concept a bit, to adapt to the market place for this group....so stay tuned.

Don
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Sounds good, Don!

I just may sign up myself...(sent you a PM)



Don't be too hard on me now.... :D
 
Don and the others,

When I ran opening orders I used more of a large basket and didnt research the individual stocks, playing more of an law of averages approach..

It seems like you have had luck with stock specific set ups. While I am not asking you to reveal which stocks you like, etc, can you tell me which stocks (if any) are good to stay AWAY from?
 
Quote from mdl060374:

Don and the others,

When I ran opening orders I used more of a large basket and didnt research the individual stocks, playing more of an law of averages approach..

It seems like you have had luck with stock specific set ups. While I am not asking you to reveal which stocks you like, etc, can you tell me which stocks (if any) are good to stay AWAY from?
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Use your "children" (your basic stocks) for sure....add one or two that may "hedge" them on the opening.....be sure you know all the fundamentals involved with each stock. You can now do larger size on the orders (3,000 or more) so that you can lower your per share costs, which is a big factor.

Can't really get into specifics on stocks.....but after trying them for a month or so, change if they aren't working.

Don
 
I am adding and removing stocks regularly from my list and the key is to start small and keep notes and stats on them. I don't have much in the way of criteria for what I add, as long as it's over 700k/shrs a day or so, that's all I look at. Then I start out at about 25% my normal size and re-evaluate after 3-5 fills.

The important thing is a specialist who is fair and somewhat readable. You want to see them open their stock with a gap and close the gap in a fairly orderly manner. The idea is to constantly field new recruits in hopes of finding another star that you can regularly cash in with some big size.

Some of the big, mean ones will give you your biggest losses and your biggest wins, several drug stocks and hmo's come to mind. If you learn how to trade them though and know when to cut and run, and when to hold, they can be great. The lower priced, thicker stocks seem to be more consistent, with smaller wins, but you can push the size on them.
 
Lescor has a good method to picking your stocks. Start small, move your size up after a couple of fills. Give each stock at least a month after you determine it is working well. You'll have a couple of bad days, but they are expected to happen.

Repetition is the key to finding consistency with this method. The more you trade certain stocks, the better you will be able to read them.

We get serious with the new recruits on Monday. I'll keep you posted.

Don
 
I also follow Lescor's method. I keep a daily journal of wins/losses and break evens and adjust my stocks accordingly. Also if I notice a trend then I start to lower my share quantity. HD is my most recent example. My historical win/loss percentage was about 60/40 (not that good but acceptable) but in the last 2 weeks have had 4 losers in a row so I lowered my share quantity today and will monitor it closely. If the next fill is a loser it is off my list.

Stats from last week. It was a tight week. 4 trading days only. 3 winning days, 1 loser. 24 fills. $7 gain for every $1 lost.
 
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