TRADINGMARKETS.COM Members, Welcome to Week Two of My Day Trading Course
                       Stock Selection
                       The stock selection process that I  believe  is  mostbeneficial to day traders is one which focuses on the  primary  stocks  thatinstitutions depend on to outperform the S&P 500. These  stocks  demonstratestrong relative and absolute performance to the Index. Most of these  stocksare in the S&P 500 index and have excellent liquidity.                       Our job as traders is to  identify  the  stocks  thatthe Generals are currently adding to and overweighting in their  portfolios.It is the herd mentality which creates the momentum that leads  to  many  ofthe parabolic rises we have seen in  this  bull  market.  There  is  nothingbetter than getting good entry in strong momentum stocks  that  have  pulledback only to have the Generals and momentum  players  take  them  up  again.Also helping this  process  are  the                         "ACCELERATORS,"which are the hedge funds, program traders  and  sometimes  the  specialistsand option market makers.                       To better appreciate the stock  selection  process  Iwill try to give you some background on how a growth  fund  manager  thinks,and how he builds the fund portfolio.