Who is on the other side of KM Trades?

[Trader01]

KM has filed bankruptcy. The stock is going to zero. Any buying or selling of KM shares are being done by gamblers or totally uninformed investors who think KM may "come back."

KM shares are going to go the same route as Enron shares...headed to zero, soon.

 

[version77]

I would think since there is such a massive turnover of KM
shares each day that daytraders are having fun with KM also...

 

[rtharp]

Originally posted by version77
rtharp

Is this the same strategy as the Great New Pattern that
Praetorian2 uses? Or is it different? It seems I remember
him trying to pick bottoms intraday. Or at least pyramiding
into the perceived bottom?

close

but my being right is is around 80%. This is due to being a lot more picky on the entry. For a long

IT MUST BE POSITIVE FOR THE DAY
and MARKET MUST BE POSITIVE

I don't pick bottoms on bloody days. Why fight trend?

That's the day to play shorts

 

[rtharp]

Originally posted by version77


Can I ask why this strategy would also work for Nasdaq stocks?
There wouldn't be a specialist that had inventory to get rid
of, but then again I guess shorts would have to cover...

Market Makers are buyers and get shorts to cover. I'm not clear why it works on NASDAQ but I've seen the same patterns.

 

[rtharp]

Originally posted by Trader01
KM has filed bankruptcy. The stock is going to zero. Any buying or selling of KM shares are being done by gamblers or totally uninformed investors who think KM may "come back."

KM shares are going to go the same route as Enron shares...headed to zero, soon.

No arguement there. This is daytrading though I'm talking about.

No overnight.

Enron had over a point bounce look at the daily chart when it hit bottom. In fact I remember Don/Bob were long 200,000 shares for that type of bounce. (too risky for my blood)

I'm looking for blood/pain. 99% of everyone is selling. When all the sellers are gone there is nowhere for it to run but up. Squeeze all of the shorts to death.

I like being a buyer when nobody else wants to buy and a seller when nobody else wants to sell.

THE GOLDEN RULE FOR THIS IS DO NOT GO LONG TILL IT BECOMES POSITIVE.

take on a bigger position when you first enter and do not add soon thereafter. Peel off position as it moves in your favor.


Works like a charm.

Robert

 

[esc_trader]

I've heard about adding to a position when it's going your way.
Anyone do this? I'm usually too anxious to take some profit.

 

[version77]

Originally posted by rtharp


close

but my being right is is around 80%. This is due to being a lot more picky on the entry. For a long

IT MUST BE POSITIVE FOR THE DAY
and MARKET MUST BE POSITIVE

I don't pick bottoms on bloody days. Why fight trend?

That's the day to play shorts

I believe that a winning percentage of 80% is a good number
especially if the wins are as big or bigger than the losses.

Picking bottoms on a bloody day would cause too much
bloodshed for sure. And on these days you pick high flyers
to fall once they go below the close of the day before?
Very interesting indeed.

 

[version77]

Originally posted by rtharp


Market Makers are buyers and get shorts to cover. I'm not clear why it works on NASDAQ but I've seen the same patterns.

So the market makers will buy up a bottom helping the shorts
to cover and then be selling to them at the same time. I see.

 

[version77]

rtharp

Have you ever seen the Power Scan strategy on Esignal where
a trader (R. Scales) pyramids into the bottom on cheap stocks?
He will take a $1 stock that has dumped to .50 and buy more
as it goes down.

Here is the link:

www.esignal.com/scanner/strategy/powerscan.asp

I was wondering if you think this a valid strategy or if it has
too much risk.

 

[noddyboy]

Originally posted by version77
rtharp

Have you ever seen the Power Scan strategy on Esignal where
a trader (R. Scales) pyramids into the bottom on cheap stocks?
He will take a $1 stock that has dumped to .50 and buy more
as it goes down.

Here is the link:

www.esignal.com/scanner/strategy/powerscan.asp

I was wondering if you think this a valid strategy or if it has
too much risk.

What he is do is (inefficiently) making a synthetic put option, and selling it for a premium. If the put is far out-of-the-money, then he loses rarely, but note that he loses big-time when the stock goes to 0. If you believe in this strategy, why not sell out of the money puts at $0.1 for a $1 stock?