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Digital Moving from One Winning Stock Position to the Next Howard Abell DEARBORN’ AKaplan Professional Company ‘This publication is designed to provide accurate and authoritative information in regard ro the subject matter covered. ICs sold with the understanding that ‘the publisher is not engaged in rendering legal, accounting, or other profese sional service. If legal advice or other expert assistance is required, the sere vives of a competent professional person should be sought Pettorial Director: Cynthia A. Zigmund Managing Editor: Jack Kiburz Interior Desian: Lucy Jenkins Cover Design: Jody Bilert “Typesening: the dotted 1 SuperChaits is a registered traclemark of Omepa Research, Ine: (©1999 by Innergame Partners Published by Dearborn, a Kaplan Professional Company All rights reserved, The text of this publication, or any past thereof, may not be reprochiced in any manner whatsoever without writen permission from the publisher Printed in the Unived States of America s9000t 1098765432 Library of Congress Cataloging-in-Publication Data Abell, Howard, Digital day trading + moving from ane winning stock position to the next / Howard abel pcm, Includes bibliographical references and index. ISBN 0-7931-31138 (hardcover) 1, Electronic trading of securties, 2, Stocky—Oata processing, 3. Investment analysis. 1 Title HG4515 95.423 1999 382.640285 ded so.17724 cp Dearborn books ase available at special quantity discounts to use as premiie tums and sales promotions, or for use in corporate training proggrams. For ‘more information, please call tie Special Sales Manager at 200-821-9621, ext, 4514, oF wnte t0 Dearborn Financial Publishing, Inc, 155 North Wacker Drive, Chicago, TL. 60606-1719. ted t0 all the traders who have the courage to pursue their vision of “free enterprise.” Preface ix Acknowledgments xiii PART ONE Psychological and Strategic Considerations 1, The Day Trader's Advantage 3 2. The Psychology of Successful Day Trading 15 3, Serategy and the Overall Game Plan 31 PARTTWO Trading on a Level Playing Field 4, Competing with the Market Makers 39. 5. Interview wich David Jamail 51 6. Interview with Stuart Shalowitz _ 63 7. Interview with Andy Kershner 71 PART THREE Technical Analysis and Day Trading 8 Technical Considerations 89 9. The Digital Day Trading Method 107 PART FOUR Principles of Successful Day Trading 10. HowWinning Traders Think 167 ‘Appendix A: Major Stocks Traded: Nasdaq 100 and S&P 500 177 ‘Appendix B: Electronic Trading Platform: TradeCast 3.0197 Glossary 257 For Further Reading 261 Index 263 ‘About the Author 269