Ameritrade (fka AMTD)

[mokew]

Motivated by High-Percentage Gains
Sunday, October 26, 2003
Intuit_Information Newsletter


NEW YORK, N.Y. -- (INTUIT BUSINESS WIRE)--Oct. 26, 2003 Small and Micro-Cap stocks are red-hot. There is a heard mentality building and enthusiasm for the diamonds-in-the-rough now has the look and smell of seasoned momentum players driving demand. Forget about the economic recovery, the Iraq issue and geopolitical concerns, Small and Micro Cap stocks are red-hot and now is the time to be trading in and out of them.

Individuals who trade these high-risk stocks are motivated by high-percentage gains and realize the playing field of the OTC.BB is far from level. The way to beat the Market-Manipulators is trading on their coat-tails, that is buying/selling before them and you do this with experience and good insight.

There is good news embedded in the universe of many low priced stocks and one look at their YTD price/volume+ chart is your confirmation. The key is finding the gems before the crowd and if you’re playing the market look at this as an opportunity of a lifetime.

Chances are you’re making good money YTD trading and you feel upbeat but remember this, treat every trade independently. The key to additional trading success is your ability to stay focused day to day and trade to trade. Also, keep in mind where your place in the trading learning curve is because these are manipulated markets and chances are the manipulators [in-the-loop] are privy to information that most of us dream of.

To improve Your Overall Percentage Gains Lock in Profits

When upward momentum is on your side exiting your entire position as soon as you have a small gain is a big mistake. The only thing worse then losing money on a trade is closing the position of a red-hot stock only to see it go up another 1,000%.

One educated guess is you will never be able to make money in the long run with that approach. Your percentage gains will be too small to overcome losing trades. In order to be long-term profitable some of your original position must be given the opportunity to run, this is where you will make the BIG MONEY.

Personally, I like to start taking profits at specific price levels that are pre-determined intuitively before I go into a trade while always holding enough of a position should the stock/price move substantially.

Coming Out of a Recession:

The level of growing prices in penny stocks is highly sustainable now for three reasons. One is because Hedge Fund managers are controlling price movement. The other two dominant forces are based on the stock markets history.

Two: these stocks habitually outperform Large/Mid-Cap stocks when the economy is coming out of a recession. This isn't a prediction it’s a consistent historical trend that has repeated itself time and time again. The fact is small and micro-cap stocks bounce back faster once the economy begins to expand. This happened following the 1975 recession as well as after the recessions in 1980, 1982 and 1990.

Third: job growth following a recession has lagged the market's gains in the past. In the early 1990s, the improvement in the labor sector lagged the stock market's gains by about 18 months [this Bull Market started in Oct. ’02].

The probability remains that the major indices continue to move higher, three steps forward and one step back in this case because liquidity is plentiful and global economic acceleration is poised to expand.




Jake^