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Page 108
The New Wall Street Ninja
Today's successful DAET trader will not typically make a large profit on any single trade. Rather, the DAET trader will flip in and out of the same security or market-sector security over and over during the same market move. A recent Nasdaq rule change makes clear that traders may reinitiate the same side of the same security at will so long as their current position is flat.
For example, it is unlikely that a great trader will buy SUNW at 28 and hold it during a move to 32 (if that move occurred intraday), making a 4-point profit. It is much more likely that the trading would look like this:
BOT....28
SOLD...28 3/8.....+3/8
BOT....28 1/2
SOLD...28 3/4......+1/4
BOT....29
SOLD...29 1/2.....+1/2
BOT....29 5/8
SOLD...30 3/8....+3/4
BOT....30 3/4
SOLD...31 1/2....+3/4
BOT....31 3/4
SOLD...32......+1/4
BOT....32
SOLD...31 3/4......-1/4
Total profit2 5/8
Total tickets14

Although the total profit is lower than the theoretical 4-point gain, this scenario is very real and obtainable, with the trader continuously returning to a neutral position, thereby avoiding significant loss if and when the market finally reverses. The trader remains in control and prepared to change direction on a moment's noticeno home run BUT consistent trading profitability.

 
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