a 5000 bid shows up at 46-Before the dogpiling is over RON trades as high as 48.
"Remember the power of the Stepping In Front Of Size strategy at new highs.
OCOPVWSHr COOPER TKA0MG INC., 1197.
155
The Best of My Learning Sheets 
DAILY LEARNING SHEET
COOPER  TRADING  INC
16 JULY 1997
open to 39 on a good earnings report - the first sign of momentum and a potentialbreakout - a 5000 share bid shows up at 39 1/2 (9:40am) - a sign of follow throughthat the gap up is real. The bid is quickly raised to 39 3/4 for 5000 (9:41am) and
TSK - An Old Friend DeliversTSK is a good example of Stepping In Front Of Size at New Highs.  After a large gap
immediately  another buyer steps in with 5000 to buy at 40.TSK never looks back, closing on its high, and leaving us with an Expansion Breakoutsignal tonight.
156
COOPER  TRADING  INCDAILY LEARNING SHEETQl JULY 1997
Torpedo At New High
Cummins Engine (CUM) Is another great example of How to use a new trigger point to reenterif stopped out  Having carried over a piece of Cummins from the solid Expansion Breakoutset-up on Thursday, <c I tightened up my stop to protect my profits Friday morning when themarket started to implode.  The stop was hit, however, when CUM executed the back-to-backExpansion Breakout signal from Thursday at TT, ® it was time to reenter.  I particularly wantedto go tang the stock again sines in spite of a plunging market CUM began to lift (Torpedo -
Damn the market, full speed ahead!) eventually climbing to over 80 and leaving us withanother 3 point prom. These back-U-back Expansion Breakouts are truly indicative of
torpedo at new highs - good things usually happen. Incredibly, Cummins went out with a third
streaking stocks that are r a powerful runaway move.  When you see one - particularly with a
Expansion Breakout signell
OCOPnMMT COOPER TWtWW UK.,  tm.
157
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COOPER TRADING INC
DAILY LEARNING SHEET22 JULY 1997
only a small profit, the stock closed at/near the low of the day suggesting the position becarried over. Friday, HRS followed through to the downside - again dosing near its low forthe day <$>, so again a short should be maintained. Monday, the patience paid off as HRStraded down to 84 3/4 ®. This is typical behavior once a stock pivots, it may move slowly -the range expanding as it gains momentum. The analogy I like to use is that of a rain storm: it
Last Thursday, MRS triggered our Lizard short sale set-up O at 87 5/8 * and although we had
action on a short-term and long-term picture,
starts out with an innocent trickle and climaxes in a downpour.  This Is often true of price
The overriding reason to focus on last week's Lizard short sate was the failure of HRS as it ran
back up to the 50 day moving average and the area of its breakdown (the Expansion Pivot off
6/30)®.
occrvmwr coom TOWW we., ittr.
158
Chapter  21
COOPER TRADING  INCDAILY  LEARNING SHEET23 JULY 1997
nurse a position hoping It will come back, while other opportunities are occurring.For example, RHI triggered us long Tuesday at 511/2 and ran up to 53 3/4 before reversingand closing virtually flat, leaving us with a Lizard sell signal tonight. ® Trailing stops wouldhave locked in at (east a 1 point profit.
The cornerstone of the Hit & Run methodology is using trailing stops to protect profits. Since
we are short-term (1-3 days) momentum players, this Is particularly true: we don't want to
An Example of a Trailing Stop
(or buyers) who "anticipated" the news take advantage of the move. Such was the case with
RHI which had good earnings today,
Often good news (or bad) will impact a stock over the first hour of trading only to see sellers
Note how the stock found high in the first hour - and in spite of the roaring market gave up a 21/4 point gain. Often, I have mentioned the tendency for a stock to find its high or low for theday in the first hour. Typically, if there's going to be a reversal it will occur from that 1st hour
peak or trough.
OCOPYWOWT COOPER TJWWWB UK.,  IM7.
The Best of My Learning Sheets
COOPER  TRADING  INCDAILY LEARNING SHEET28 JULY 1997
attention to these subtle breakouts has proven rewarding - as the stock often explodes the next day.
few days before they pullback. The Expansion Breakout Thursday, though not glaringly obvious, was a
pivot to a new 60 day high on a range greater than that of the last 9 days.  In my experience, paying
Many times, I have noticed how huge, booming Expansion Breakouts with bells and whistles that thecrowd easily recognizes - although they often follow through the next day - are prone to quickintraday whipsaws or a 1 to 2 day pullbacK before the initial impulse continues.
As you can see, Flat Top Breakouts offer good risk to reward as the stocks explode out of a sideways
compression.
OCOPVWOHT COOPER TfUDINQ IHC., 1997.
NotAIIExpi
Here we have VMC, which was a good Expansion Breakout set-up for us Thursday nightl ® The set-up triggered at 80 7/8 and the stock grinded up all day, closing on its high for a solid 3 point profit. ®The strongly favorable high to dose ratio suggests further follow through so a piece should have beencarried over.As I've mentioned in the past these Flat Top Expansion Breakouts tend to follow through for at least a
160 
Chapter 21
COOPER TRADING INCDAILY  LEARNING SHEET30 JULY  1997
Those of you who are long-time subscribers know how strongly I feel about multiple
OPBLCXMKERO L.P.
signals.  Today, PDS (along with LUX) were multiple set-ups on the Small Cap sheet.Our entry on PDS was at 51 and the stock exploded as much as 2 3/8 points higher.
As I have stated in the past, if you cannot trade all set-ups, focus on the ones withmultiple signals.  This will increase your chances of success even further.
The  Best  of  My  Learning  Sheets  161
COOPER  TRADING  INC
DAILY LEARNING SHEET
31 JULY 1997
Maximizing tti» EffactlvBi*w« of the Small Cap S»rvic»
m peamastoH of BLOOMERS L.P.
One of the key features of the Small Cap Fax Setvica is the section where I point out the large
have a 180 set-up but there was a very large buyer bidding for stock near Tuesday's close.
prices to 74 almost immediately!
buyers and sellers near the close.  Many times, those large orders get carried into the nextmorning, pushing prices even further.This was the situation today on KSU, a stock I added to the list for Wednesday.  Not only did it
This morning our 180 set-up triggered at 72 3/8 (filled at 72 1/2) and the buyer(s) pushed
The Small Cap Stocks lend themselves to many more opportunities than the Big Cap and by
Putting Pieces Together (as above) you expand your profit potential.
&t  TRttOtHQ  INC.,  IttT.
Chapter  21
DAILY LEARNING SHEET
8 AUGUST 1997
COOPER  TRADING  INC.
As you know, the Small Cap service w structured to make money numerous ways. OnThursday's sheet, for example, we had an Expansion Breakout set-up on TKC (which I added
at 77 1/2, triggering our buy signal, but also look at 0) the fact that the buyer was again looking
to the list) and we also noted it had a large buyer at the close.  This morning, the stock opened
for stocki Also, note that he <2> immediately raised his bid, triggering a Stepping In Front OfSize signal.
Putting pieces of the puzzle together, as we did above, is the difference between the smallhandful of professional traders who make a consistent living and everyone else!
CCOPYWONT COOPER TOWNS WC, 1997,
COOPER  TRADING  INCDAILY  LEARNING SHEET13 AUGUST 1997
One of the concepts I have continuously stressed is looking at stocks that tradedthe way they should not have traded.
JKPIVWTED tWTHMHMSSKW OF BLOOHBOG LP.
1 7/8. The stock has a strong ADX reading of 45 and it also has a 1-2-3-4 set-upfor tomorrow. For risking approximately one point, we have a chance to
participate in a potentially large move day should the buying follow-through.
Today, the NASDAQ 100 Index dropped nearly 2% yet, Linear Technology rose
When a leading stock rises 1 7/8 on a day, the Dow loses 100 points, it is usuallytelling you something very positive.
164
DAILY LEARNING SHEET
14 AUGUST 1997
COOPER  TRADING  INC
day moving averages) on the Hit List.
The Whoops strategy is especially valuable to focus on when the market has indigestion.
This is a good time to look at the downtrending names ft.e, those stocks trading below their 50 and 10
Not only do you have a stock under pressure, but during a reaction/consolidation phase such as we'recurrently undergoing, you also have the market winds at your back.
BMY (on the downtrending Hit List) closed below its open on Tuesday and popped up 1/4 to 1/2 pointsal Wednesday's open creating a Whoops set-up. The trigger was 74 3/4, Tuesday's dose. Within 40minutes of our entry BMY trades to 71 3/4. When the character of the trend in a stock has changed
tales to pop it's head up a little above water in the morning only to be met by seders. Please monitorour downtrending stocks for this bread and butter set-up.
(from up to down), it is often accompanied by a series of Whoops.  This indicates distribution: the stock
OCOPYWOtfT COOPER TRADING UK., 1t»1.
The Besi of My Learning Sheets 
165
DAILY LEARNING SHEET
15 AUGUST 1997
COOPER.  TRADING  INC
Seldom are traders, who are triggered long (or short) and quickly stopped out, willing toreenter when the trigger is hit a second time; it is difficult emotionally to take these trades thesecond time around: no one wants to add injury to insurt by getting stopped out twice.However, this is one of the attributes that separates great traders from average traders. In the
markets, it is often the hard filing to do that pays.
Gcopnwwrcoonrr nMOHSwc.,  iff?.
I get many questions asking if it makes sense to reenter a trade fte same day after getting
Whv It Pav» To R^ntof After Balno Stooped Out
stopped out.  In a nutshell, the answer is yes, reenter at the original trigger price.
Sometimes terrific gains will occur after just such a flush out  CYMI. a 1-2-3-4 buy today, is agood example.  It put us long first thing this morning at 80 1/6 and we were stopped out at 791/8.  However, the signal was re-triggered when the stock traded at 80 1/8 again, as you cansee, after building a base intraday. CYMI exploded to 84 1/2 in the last hour.
Chapter  21
COOPEH  TRADING  INC
DAILY LEARNING SHEET
20 AUGUST 1997
When stocks make new highs and large blocks for sale are easily removed, the likelihood ofhigher prices to greatly increased. Look for this phenomena in your trading; it wif improve your
results even further.
Last night I pointed out the multiple set-up on OEI.  Today, it worked nicely {up more than 3points intraday).  On tonight's Learning Sheet. I would like to point out something interesting toyou.  As we know, OEI is a thinly traded stock.  This morning, <B a large seller showed up.This should have put an end to the move for at least awhile but, <S> the offer was immediatelytaken out!  This showed us that there was still sotid buying coming into the stock and it told usthe stock was likely to move higher.
The Best of My Learning Sheets 167
COOPER  TRADING  INC
DAILY LEARNING SHEET
21 AUGUST 1997
More On When To Carry Over A Position
As I've pointed out in the past; when a stock closes near it's highs, it's a good idea to carryover a position (or at least a piece).
ftfiPAWTED HTTN neffiWSSKW OF Onitoc AMwWi Aic.
When a stock doses near its highs and also creates a new signal going into the ctose. there isan even greater propensity for the stock to follow through the next day. Let's look at anexample. We went long UTR on Tuesday at 68 5/8 (off the HG2 Buy signal), ffl The stock
Putting these two pieces together gave us a strong reason to carry the position overnight; andas you can see UTR exploded out of the gate Wednesday trading to as high as 77 1/2 (leavingus with a piggy back Expansion Breakout) © Staying long a position in the face of a newsignal enhances the potential for profits.
closed within a fraction of its high and was an Expansion Breakout.
OCWVWOHT COOPER ITUOWa  IHC.,  1t»J.
Chapter  21
DAILY LEARNING SHEET
27 AUGUST 1997
COOPER  TRADING  INC
Even if you did not take this trade, it serves as a good example.Last night, I added VECO. a high velocity stock, to our list. The stock had an ExpansionBreakout which triggered today at 61 1/2. Within 40 minutes, there was a 2 point profit 0) andmoving the stop up to 62 1/2 on at least 1/2 the position assures this of becoming a profitable
trade.Sold gains must be locked Into, especially in this market environment which is highly volatile.
t would like to use tonight's Learning Sheet to again stress the importance of locking in profits.
REHVNTED  tWTH  PEfiWSSKW Of BLOQMBERQ  LP.
The Best of My Learning Sheets
COOPER  TRADING INCDAILY LEARNING SHEET2 SEPTEMBER 1997
This moming, Size To Buy showed up on OEI (the old Flores and Rucks Co.) which is on our list. First,there was a bid for 5,000 shares at 61 1/4 (7:18 PST) and size was bid the uptick at few minutes later
at 61 1/2.  OEI traded to as high as 64 7/16 where a large seller (15,000 shares} showed up
This put an end to the move-short-term-knocking the stock down a point to 63. However, something
Immediately another large offer (22.000 shares) appeared at 64 1/16 which was increased to 42,000
shares I
to 64 again where you'd ordinarily expect resistance. But what happens? A large buyer (10,000
interesting happens at Itiis point which you want to store in your memory bank. OEI works its way back
shares at 64} shows up (11:22 PST), the 10,000 share bid is raised to 64 1/4 at 11:30 PST and a
/tfew HfoAs and Sfa« To Buy
M irfffi fMntriuton of awowtarp LA
minute later, the 10,000 bid is raised yet again to 64 3/8. Someone's getting desperate!At 11:34 PST, a 10,000 share bid appears at 65. The stock has easily removed the large blocks seenearlier, and the large bid at new highs tells us that the buying strength has overwhelmed the sellers.The stock quickly trades to 67 before settling back and trailing stops would have locked in nice profits.One of the benefits to trading thinner small cap stocks is that when an institution wants in, tney usually
This persistency in a stock is one of the characteristics I look for when assembling the Hit List.
bid up the price continuously.
OCOPrtttGHTCOOPEHTMOMQIIK., 
IMF.
170 
Owfterll
COOPER  TRADING  INCDAILY LEARNING SHEET10 SEPTEMBER 1997
One of my beliefs is that it is just as important to know how not to lose money as it is to knowhow to make money. As you are aware, the profitable Hit And Run set-ups many times takecare of themselves. These are trades that, once you enter, they become profitable and staythat way into the close. Unfortunately, life isn't that simple. There are trades that immediatelybecome profitable and just as quickly become losers. How you handle this situation willdictate how successful you are at this game.
How Not To Let A Gain Turn Into A Loss
your stop to break-even to avoid this becoming a losing trade should it reverse. Those who
Today, VTS triggered an  Expansion Breakout buy at 39 1/2.  The stock immediately shotnearly a point higher.  Mo matter how hard you believe the move will continue, you must move
did this today basically had a "scratched trade"; those who didn't, saw a gain turn into a loss
(and now have a smaller net worth),I become a much more successful trader when I learned the above money managementstrategy. Fortunately, it only took me five years to make this, discovery!
COOPER  TRADING WC,  1997.
COOPER TRADING INCDAILY LEARNING SHEET
The Best of My learning Sheets
16 SEPTEMBER 1997
Whv Multiple Signals are the Best Signals
As I have continuously stated, those stocks that have multiple set-ups are historically the bestperforming set-ups to trade.
Today, on the two sheets we had 5 multiple set-ups. MTL didn't trigger, and OEI triggered andwas quiet.  RON, NC, and TPL were another story.  These three stocks immediately explodedhigher after triggering our buy stops and all three moved to all-time highs.
If you cannot srt in front of the screen all day, focus in the multiple set-ups when they exist.
This will improve your chances of success even greater!
COOPER TRADING INCDAILY LEARNING SHEET
17 SEPTEMBER 1997
Chapter  21
Whenever the bond market has a large move (as it did today), the financial market stocksfollow. One of the best Small Cap financial markets stocks to trade is BEN (Franklin
Resources).  The ideal way to enter this stock, on a day like today, is to step in front of size
(D Early this morning, a buyer of at least 5000 shares bid for stock at 83 1/4 and @ he raised
Usina the Bond Mai
15/16 within a few hours. Focus on the financial market stocks on days the bond marketeither explodes or Implode as they lead to solid moves.
OCOPHHGHr COOPER T7MOWO INC., f «ir.
his bid to 83 7/16. triggering our buy signal.. ® We buy at 83 5/6 and place our stop at 83 1/8which is 1/8 under the first bid.
By risking only 1/2 point, you got a chance to participate in a stock that traded to as high as B5
DAILY LEARNING SHEET 19 SEPTEMBER 1997
The Best of My Learning Sheets 173
COOPER. TRADING INC.
However, once a strong trend or runaway move begins, they're nature is to continue, They don't end easily or
One of the biggest mistakes most traders make (myself included) is finding a great slock, but not going back to It
again and again.
A FEW WORDS ON THE MATURE OF PE3ISTEHCY AND STALKING STOCKS
has given rise to so many 'players." 1 am a great believer in keeping my decision-making process simple-getting
quickly  The old expression is "me Bull dies hard."  Momentum begets momentum particularly when a bull market
overwhelmed with a lot of indicators tends to paralyze me.  Hence. I rely a great deal on ADX (Average DirectionalMovement Index) to identify strong trendsNC (which nas been on our Hit List for months), is a terrific example of the kind of persistency in trend I'm referingto. Besides many days of winning Stepping In Front Of Size trades, NC nas left us with numerous Hit And Runset-ups all Hie way up.Here are a few examples:
7/29 180/Slingshot<3> 8/18 180®
6/26 XBOS 
7/22  Boomer® 
8/5 
180® 
9/5 1-2-3-4 ®9/12  1-2-3-4 S>
an see, stalking stocks far profits becomes much more doable once you've identified persistency - this isn for the Hit List. It becomes our starting or focus point when looking for set-ups.
CCOPYRIGHT COOPER  nMOWGWC.,  O9T.
Chapter  21
COOPER. TRADING INC.
DAILY LEARNING SHEET22 SEPTEMBER. 1997
Stepping In Front Of Size on a stock that has been down in the morning and is just going
Size To Buy As A Stock Goes Positive On The Day
positive offers a good risk to reward ratio.  The morning decline serves to pullback the
rubberband and create a bit of compression. If the stock is able to 90 positive on the day and
size buyers are around, there is a good likelihood of follow through.  I have found this to be aparticularly powerful strategy when used with stocks that are just coming off recent new highs.
Let's look at an example.  LSS closed at 47 15/16 Thursday.  Friday, the stock pulls back to 469/16 (-1 3/8 points) in the first hour of trading.  At 8:26 AM PST a 5000 share bid shows up at47 3/4;  at 8:28 AM PST, the bid is immediately raised to 48 1/8 (pivoting positive on the day)
and we buy.
LSS leaves us with a 180 buy signal tonight and in classic technical terms had an outside day
up {lower km, higher high, higher dose) - a further sign of strength.
COOPH* nuorm we., t»7.
The Best of My Learning Sheets 175
COOPER TRADING INC.DAILY  LEARNING SHEET23 SEPTEMBER 1997
e our trading style is extremely short-term, it is imperative to lock in profits. When this
Locking In Profits-The Cornerstone Of The Hit And Run Methodology.
stock rose to a 1 7/8 point profit within 30 minutes- At these levels, you should sell half of your
is done on a consistent basis, it allows you to make a very nice living.
Today, for example, we had a 180 buy set-up trigger on (j) Compaq (CPO) at 77 5/8. © The
position and move your stop to around 78 5/8 to lock in profits on the other half.  This allowsyou to guarantee a profit and move on to other trades.
As I have stated before, trailing stops are the single best way to assure a profitable traderemains that way!
Chapter  21
COOPER TRADING INC
DAILY LEARNING SHEET24 SEPTEMBER 1997
especially true with high velocity stocks that are extremely volatile.
As we discussed last evening, the key to successful trading is locking in profits.  Thi8 is
Locking In  Profits - Part II
Today, late in the day. ® a buy signal was triggered on TXN at 140.  Within minutes, there was
a two point profit. You must move your stop up © to at least 141 to assure this trade remainsprofitable and more importantly, not allowing it to turn into a toss. The ability to lock in gains isthe difference between those few traders who successfully do thfe for a living and everyone
The  Best  of  My  learning  Sheets  177
DAILY LEARNING SHEET
COOPER  TRADING  INC
25  SEPTEMBER  1997
The majority of the Hit and Run Set-ups ^re for day trading. There are times, though, when itte advantageous to hold a position overnight. This occurs when a stock doses near or at the
When To Hold A Position Overnight
top of its range (bottom of its range for short positions).
On Tuesday ® we had a 180 buy signal trigger at 43 1/8 on DKB. As you can see, the stock
closed near the top of its range for the day and on an Expansion Breakout. The odds favorthe buying carrying into the next morning ® (today) and that is exactly what happened.
Even though there is additional risk holding positions overnight, stocks that dose strongly inyour favor are good bets to follow through the next morning.
Chapter  21
COOPER  TRADING  INC
DAILY LEARNING SHEET
29 SEPTEMBER 1997
How to Diagnose A Stock That's SickThe first piece to use in determining the health of a stock is Hs relation to its 10 and 50 daymoving averages. If the stock is trading below both of these, it's under wiling pressure- atleast in the short run.The second piece to use is the propensity of a stock to open near its high for ma day andclose near Its low for the day.  This indicates persistent distribution.  This dMribution isparticularly evident when a stock pops up on the open (in sympathy with a strong open on theS&P Futures for example) and can't hold the gain.  This is symptomatic of institutions using
any type of strength to unload inventory (they prefer to seH into strength If accommodatedrather than hit discount bids, which only serves to further weaken a stock).
The Whoops Strategy (popping up and turning down on the day) does a good tab of identifyingwhen sellers are more anxious than buyers. Stocks undergoing day after day of Whoops such
The selling could be simply profit taking, but often it's a signal that something in the biggerpicture is wrong.  That's why w» focus on these stocks on a dally baste, because if (here issomething wrong, we'll be there to participate on the short side.
as HDCO. often indicates someone knows just how sick toe patent may realty be.
The Best of My Learning Sheets 179
As many of you know. Stepping in Front of Size on new highs is a valuable and profitablestrategy. Another angle to this theme is to took for large blocks of stock for sale on a thinly
traded stock that is trading at new highs.  If this block is eliminated by buyers, you know the
Taking Out A Large Offer On A New High
momentum players are focused on this stock and are taking it higher-Today, LSS had a large seller cp at 51 as the stock made all time highs. As you can see © theseller was quickly taken out and this indicated that more buying than selling was prevalent.The stock proceeded to close at 52 3/16 on an Expansion Breakout.
Look for this type of situation whenever you can as it many times lead to further price
appreciation.
180
Chapter  21
DAILY LEARNING SHEET
COOPER  TRADING  INC
6 OCTOBER 1997
Cftvti cnfttd atlng SuptrChtrti 9byOat*g* R****rcli Inc.
A«prftlMWWrfMnnta«taiierOiin0lfl«WEAAiE.
Waterfall Declines
Despite the market's strength this week, NIN gave a Multiple sell signal (180, XPT) on
Tuesday ® that was triggered at 39 1/4 on Wednesday ®.
up (often traders square out positions before a weekend). Trailing stops should have been
the backdrop of a strong overall market, there is a good opportunity for a quick profit.
As you can see, NIN closed on its low Wednesday and Thursday - Why would you cover?Friday, NIN traded down another point to 35 7/8, before some apparent short covering showed
tightened to approximately 36 1/2 - 36 5/8 in order to protect a solid profit.Stocks that continue convincingly lower day after day while closing near the bottom of the dailyrange are symptomatic of liquidation.  When you see a stock begin a waterfall decline against
CHAPTER22
CONCLUDING REMARKS
In his book A Writer's Diary, Fyoder Dostoyevsky quotes a friend whotells him "You do know, whatever you write or portray, whatever you set
As true as this is for literature, it is even truer for trading. No matter how
never compare to you actually executing the trades. The knowledge from
down in writing, you can never match in real  life.  It doesn't matter whatyou depict—it will always come out weaker than real life."
many  setups,  strategies,  concepts,  and  insights  I  share  with  you,  it  will
my  books  will  give  you  an  edge  over  most  traders.  To  fully  maximizethis edge, though,  you must apply it to  the real world.  Only then will
you be able to master the markets.
I wish you the best of luck with your trading!
Jeff  Cooper
APPENDIX
information on the best brokerage houses and the best technology for Hit andRun Trading