Replies to post #9952 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[leekramer]

SI: StockTalk: Short-Term Traders : ***Trend Setters and Range Riders***



DAYTRADING: The Highs and the Woes 12/14/02

I entered doc Kronkite’s office for my regular Saturday morning session.

The curvaciously gorgeous miss Tushbumper greeted me with a smile, a kiss fully on the lips, [be still my heart!] all the while pressing against me. Hard. You can imagine my surprise.

I finally, reluctantly, pulled away and wobbled into the doc’s office and stumbled onto his lumpy leather couch.

“You look peak-ed,” said the doc.

I said nothing.

The doc walked over to me, pulled out a watch fob with a lengthy chain and began to swing it back and forth. Back and forth.

I was 7:04. a.m.

The doc said, in voice low and sonorous, “Watch the watch.”

I watched the watch.

“You are getting sleepy, very sleepy,” he said.

I was getting a bit sleepy.

“Your eyelids are drooping,” he said.

“My eyelids never droop,” I replied as my eyes closed.

“You are getting sleepy, very sleepy,” the doc said.

“Absolutely not,” I insisted, or so I thought, for I was deep asleep.

“ We shall hyptonize you,” said the doc. The Freudian method, of which I am a recognized expert, is simply not working. And it’s been ten years.”

“ I can’t be hypnotized. “ I said. “Can’t be done.”

“You are in the hypnotic state,” said the doc. “You feel relaxed and you will do what I say.”

“Doc,“ I cried, “you’re not gonna make me cackle and run around like a chicken are you?

“Absolutely not,” he said. “I’m going to make you a better trader.”

“Gee doc, that would be great. ‘Cause if you want to know the truth, I haven’t been trading very well lately.”

“Mmm,” he said. The doc’s favorite word.

“And I’m a mass of neuroses too. I think it’s affecting my trading, “ I cried.

“Well it’s good you came to me,” he said “I’m a specialist you know.”

“I know doc. And now you’re a hypno-therapist. A great combination. Kinda like Larry, Moe and Curly. I know you can cure me,” I said, still deep asleep.

“Mmm. Tell me what you’re doing wrong when you trade. Leave nothing out.”

“Gee doc, I don’t know where to begin. I put on a trade and right away I get nervous. I start to sweat. My heart begins to pound, I feel heart ploppitations. I worry that the stock will go down. I watch every transaction and if it drops by ten cents a share I begin pacing. I bump into the wall, my head hurts. I’m afraid that I’ll lose hundreds, thousands. I want to sell the stock. You gotta help me doc. I can’t sleep, I can’t eat, I can’t make nick-nick.” I screamed.

“Nick-nick?” he said puzzled. “Is it anything like strudel?
Miss Tushbumper, you may have noticed her, makes wonderful strudel. Would you like some?” he said reaching into his pocket.

“No strudel doc. Trading help I need. I thought you were a specialist?”

“Mmm. This is a very interesting case, a very perplexing case. I’ve never seen such a case in any of the literature. I’ll tell my brother analysts about you, maybe they can give me some advice.”

“But doc, the market opens Monday morning. I need a cure now! I thought you were a specialist.” This did it.

“Mmm. Ok, I’ve just come up with a solution. A brilliant solution. Listen,” he said.

“I’m all ears,” I said.

“Would you like a piece of strudel?” he asked.

“Doc, no strudel. Tell me your brilliant solution.”

“Mmm. Yes of course. I shall give you post-hypnotic suggestions,” he said, beaming.

“I don’t want suggestions,” I wailed. “I want solutions.”

“Same thing,” he said. “Are you still deep asleep? He asked.

“Yes doc, I’m asleep.”

“So how come you’re talking? You can’t talk when you’re asleep. It’s a fact. You could look it up even.”

“Doc, give me suggestions, please,” I pleaded.

“Mmm. Ok,ok. When you get nervous think good thoughts. Relax.”

“Doc, you’re a genius!” I cried.

“Of course. How do you think I got to the top of the shrinking game? Ok, ok, “he continued. “When you get nervous, when you sweat and bump into walls and have heart ploppitations you will recall the word ‘bubeleh’ , the post-hypnotic suggestion. And you will trade like never before. Millions you will make. Trust me on this. Did I tell you I’m a specialist?”

“I think so doc.”

“Ok. At the count of 3.1416 you will awake.”

I awoke, felt terrific. Couldn’t wait to trade.

Lee Kramer

Copyright 12/14/02 LSK Ltd.





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MSFT: MICROSOFT CORP(NASDAQ) Saturday, Dec 14, 2002 11:28 AM ET
Symbol Last Time Change High Low Volume
MSFT 4:01 PM 52 1/2 -1.67 -3.08% 53 3/4 52.49 32,702,809
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[lee kramer]

DAY-TRADING: The Highs and the Woes

You don't get to the top of the trading game overnight. It takes years of headaches, heartaches, insomnia and an occasional case of locked bowels. But I did it and I'm gonna tell you how you can do it. It involves some pain.

My story starts years ago when I told Suzy about my Grand Plan. I was going to quit my day job, the one that pays the mortgage, the orthodontist, the insurance, the taxes and all the other bills.

Suzy attentively listened to my plan to stay home and trade on-line. Then she whipped a heavy cast-iron pot at my head. And connected.

"But honey" I said holding my throbbing noggin and ignoring the blood running down and ruining my favorite shirt, "Everybody's doing it...trading at home and getting rich. Don't you want us to be rich."

I ducked as another pot whizzed by my ear.

"But dearest" I cried, "Don't you want me to be home with you all day?"

She gave me the LOOK; the one she reserves for the village idiot, turned on her heel and left the kitchen, leaving me reaching for a towel, a handful of aspirin and the determination to begin my new trading career tomorrow. "I'll show her" I said.

I bought a top of the line Compaq laptop, cost $2,000. I contracted with MSN for three years to access the internet, cost $720. I ordered fifteen books that promised to teach me how to be a great trader, cost $750. I had everything I needed. I was ready.

Wrong.

After reading and extensively underlining my fifteen books and watching and listening to all the experts and analysts on CNBC for an agonizingly long week I knew I was ready. I got up at 5:00 the next morning, tuned into CNBC, turned on my computer, and listened. I took notes. I waited and watched because I’d read that patience and discipline were Very Important characteristics of good traders. Then I heard Maria excitedly announce in a pre-market report from the Floor, the actual floor of the N.Y. Stock exchange! that she’d heard from a source that Orbital Sciences was about to be taken over. I knew what she meant when she said “source”; an insider…someone in the know.

I did my research, because I’d read that it’s very important to do your own research. I learned that Orbital Sciences was losing money, had a negative rate of earnings growth, a negative ROE and paid no dividend. Mmm. This was not good. But gosh darn, they were about to be bought out! That was enough for me. The stock closed the day before at $33. I couldn’t wait for the market to open.

I went on-line and placed an order with my broker to buy 1,000 shares of ORB “at the market.”

ORB open two points higher! On huge volume. It was gonna happen. I could feel it.

My fill came back at $35. A steal. From my reading I knew it was not wise to be greedy. So I’d sell when ORB rose to $39. Hey, $12,000 in a day would be fine. I’d show Suzy.

ORB moved up smartly to 36 in the first five minutes of trading. I was up $1,000. Then $37, and I was ahead $2,000. Then it paused a bit. Then it faltered a bit. It fell back to $36. No problem, just a little profit-taking. I’d read all about profit-taking. It was normal to expect some profit-taking. Then it dropped back to $35, where I’d bought it. Then $34. Then $33. Problem.

By 10:30 ORB was sinking faster than the Titanic after it met the iceberg… $32, 31 ½, 31. Don’t panic I told myself. I’d read that it was not good to panic. So I wiped my sweaty palms on my shirt, took three Tums, four aspirin and hit myself in the head with a heavy pot. It felt good.

Wrapping a towel around my head so the blood wouldn’t ruin my special Trading Shirt I told myself not to panic, to get a grip. I’d read that good traders talk to themselves all the time.

I checked the ORB price. It was 29 ½. Where was Maria? Should I buy another thousand shares here? I’d read that good traders often “bought the dip.” ORB had dipped. I bought another 1,000 shares at 29 cutting my average price to $33. Smart move I told myself.

Suzy walked in, saw the bloody towel on my head. “Bumped my head” I lied.

“Doing any trading?” she asked.

“A little” I said.

“How’s it going?” she asked.

“Great. I’m trading like a pro. Gonna be a great day, you’ll see.”

“Mmmm” she said and walked out.

I checked ORB’s price. It was still 29. I came up with a new plan. I’d read that good traders revised their plans all the time. What I’d do was sell my 2,000 shares when ORB got back to 33 and break even. Good plan I told myself.

I saw Maria back on the Floor. I was certain she’d offer some assurance that the ORB deal was OK. She said that DELL was being upgraded from a buy to an outperform by Prudential. She said that INTEL was being upgraded from a buy to a “strong-buy.” She was excited about AMAZON, YAHOO and PRICELINE. But not a word about my ORB.

When ORB hit 25 I sold it. I didn’t panic, merely made a wise decision to put my money to work elsewhere. But where? I remembered Maria’s excitement about AMAZON, YAHOO and PRICELINE. She seemed most excited about PRICELINE. I checked and saw that PCLN (I’d read that good traders know their stock symbols) was trading at 150. I put everything I had into PCLN.

I’d read that you never change horses in the middle of the stream. But the horse I was on, ORB, was drowning! By switching into PRICELINE I’d make it all back, and more.

Piece a cake.


Lee Kramer

copyright Nov. 1998

[LG]

Bob Z: Thanks for the reply. It is nice to know Jenna is alright.

Regards,
LG