Who is on the other side of KM Trades?

Discussion in 'Trading' started by nitro, Feb 6, 2002.

  1. Trader01

    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.
     
    #11     Feb 7, 2002
  2. I would think since there is such a massive turnover of KM
    shares each day that daytraders are having fun with KM also...

    :D
     
    #12     Feb 7, 2002
  3. 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
     
    #13     Feb 7, 2002


  4. 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.
     
    #14     Feb 7, 2002

  5. 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
     
    #15     Feb 7, 2002
  6. 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.
     
    #16     Feb 7, 2002

  7. 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.
     
    #17     Feb 8, 2002
  8. 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.
     
    #18     Feb 8, 2002
  9. 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.
     
    #19     Feb 8, 2002
  10. noddyboy

    noddyboy

    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?
     
    #20     Feb 8, 2002