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    Originally posted by BigL View Post
    I'm curious if anyone will post their trading strategy. How do they identify stocks, what fundamentals are they looking at, what technicals are they using, etc. Or is it all gut feel. I'm always looking for ways to improve my research and trading strategy.
    Answering my own question to put one of my research strategies out there:

    Look for the following stocks
    Percentage below 52 week high: Less than 5%
    Price: Greater than 10
    Ave Volume: Greater than 100,000
    Price change last 3 months: Greater than 1
    Price distance above SMA 20 days: Just above, Moderately above, far above

    That gives me all the stocks hitting 52 week highs. From there I put that into a spreadsheet to do a pivot table and get a count on the sectors and industries. Gives me a good quick way to see what's the hot sector.

    From there further research stocks in those sectors. I try to find good quality stocks in the hot sector. Fundamentals I perfer:
    5 yr annual rev growth > 15%
    1 year rev growth > 12%
    Gross margins > 35%
    Net Margin > 15%
    Debt to equity < 50%
    Return on equity > 15%
    Normalized PE < 25% (or at least < the industry average)
    current yield > 2%
    5 yr dividend growth > 10%
    Options - yes


    Once I find a good stock, i look at the technicals to see if it's a good time to buy. Am I too late to the game or still have room to run. Criteria:
    Price above 20 day SMA
    MACD increasing
    RSI - above 50 and increasing
    Sometimes will look at the stochastics as well. Looking for them to be above 50 and increasing also.

    Usually will hold these until price drops below the 20 day SMA, MACD lines cross, and RSI goes below 50. Sometimes I set trailing stops to get me out when at 1.5 or 2x the ATR amount. So it can peak and pull back some and I stay in but if it pulls back too much it automatically gets me out.

    Comment


      Originally posted by captainsling View Post
      Tesla is more than likely going to make a secondary offering of stock in order to have more available for the funds that have to own it on the S&P 500 once they get in. That will dilute the market and bring the price down.

      Article I read today said this could happen within a few weeks.
      good reason. Was mostly wondering if it was all speculation or if you had more info. I quit following TSLA last time I tried to short it and lost money. I never had good info it was all speculation and I was wrong.

      I rarely short stocks anymore because of it. I use options when I want to make a bearish bet on a stock and limit my risk of losses because I was wrong.

      Comment


        Originally posted by BigL View Post
        I'm curious if anyone will post their trading strategy. How do they identify stocks, what fundamentals are they looking at, what technicals are they using, etc. Or is it all gut feel. I'm always looking for ways to improve my research and trading strategy.
        Here lately I am mostly swing trading based on momentum. Find the big runs early on and sell before the pull backs. I keep a large chunk steady in long term stocks with dividends also. Better returns on swing trades so far but it can’t be easy forever. If it was everyone would do it for a living

        Comment


          Originally posted by bphillips View Post
          Here lately I am mostly swing trading based on momentum. Find the big runs early on and sell before the pull backs. I keep a large chunk steady in long term stocks with dividends also. Better returns on swing trades so far but it can’t be easy forever. If it was everyone would do it for a living
          I used to do a lot of swing trading. Was good while it lasted but job duties changed and can't watch as much as I used to. Still do a little when I get the chance.

          Sent from my Moto G (5) Plus using Tapatalk

          Comment


            Originally posted by BigL View Post
            Just curious why? What's reason that you think it will drop and the timeframe it's going to drop in?
            That was kind of sarcastic but I just cant figure this stock out nor how its valuation is being justified. It just seems to me the bubble will burst at some point. Reminds me of the dotcom days with this one. Ive talk with some really smart people who do this for a living and they havent been able to give me any good reason this stock is where it is. It could very well be Im wrong and will be kicking myself as it continues to growing exponentially.

            Comment


              Originally posted by rtp View Post
              That was kind of sarcastic but I just cant figure this stock out nor how its valuation is being justified. It just seems to me the bubble will burst at some point. Reminds me of the dotcom days with this one. Ive talk with some really smart people who do this for a living and they havent been able to give me any good reason this stock is where it is. It could very well be Im wrong and will be kicking myself as it continues to growing exponentially.
              I agree with you on the valuation. I shorted it back when it was in the 250's thinking the same thing then. Lost some money on it back then. Doesn't make any sense now either but I'm still staying away unless I do some option spreads and limit my risk. Really was curious if I was missing something on it.

              Comment


                Originally posted by BigL View Post
                I used to do a lot of swing trading. Was good while it lasted but job duties changed and can't watch as much as I used to. Still do a little when I get the chance.

                Sent from my Moto G (5) Plus using Tapatalk
                I will ride it out while I’m still working from home but will move to stuff that requires a lot less attention when we go back

                Comment


                  Originally posted by TwoHighways View Post
                  Does anyone post their bad trades/losses?
                  Most of my bad trades are from getting emotional and impatient. A lot of time they do go up like i anticipate, but they aren't done going down and i get too nervous to wait it out.
                  Originally posted by BigL View Post
                  I'm curious if anyone will post their trading strategy. How do they identify stocks, what fundamentals are they looking at, what technicals are they using, etc. Or is it all gut feel. I'm always looking for ways to improve my research and trading strategy.
                  In my IRA I'm more fundamental based because i don't watch it as close as my brokerage. In that one i run pretty much all technical or speculation with less concern for fundamentals. It all varies based on what i see. Lately, riding the 9 ema has worked. Others i play based on support and resistance levels. Then I'll mix in some momentum watching RSI and MACD. My plan is determined by a combo of daily, hourly and 5 minute charts depending on if i can make a day or swing trade. Occasionally I'll do a high dollar stock if the move is right, but prefer anything under 20 a share with lots of volume. I'll go in weekly and run the scanner for low dollar, high volume, and various market cap sizes, then compare that to net changes, rsi below 40 and MACD convergence and divergence. Looking for those stocks that just pulled back on the dailies and beginning the crossover to the upside. Those are a little harder to find so you have to watch and be ready, but can get a nice 1 or 2 week play. Otherwise i watch for more of a scalp over a couple of days, make a quick 5 or 10 percent on my p&l and move to the next.

                  Sent from my SM-G986U using Tapatalk

                  Comment


                    Dumped my silver position today. Rose too fast for my comfort. Will buy back in when it inevitably corrects, hopefully around the $20 range. Long term fundamentals are still intact

                    Comment


                      Originally posted by TwoHighways View Post
                      Dumped my silver position today. Rose too fast for my comfort. Will buy back in when it inevitably corrects, hopefully around the $20 range. Long term fundamentals are still intact
                      Not sure that or gold will “correct” until COVID is under control. Good at a all time high.

                      Comment


                        Originally posted by captainsling View Post
                        Not sure that or gold will “correct” until COVID is under control. Good at a all time high.
                        looming sovereign debt crisis keeps us the fundamental reason to own precious metals, but if shtf, I’m not sure what good owning them will actually do for anyone. Nothing ever rises in a straight line though and expect a pullback (at least in silver) pretty soon. I got in a $14 and was happy to cash out at a 58% return. I’m pretty bearish about the sustainability of what we’re doing. The powers that be have kept the house of cards up far longer than I anticipated. I thought 2008 was when the whole system would come crashing down.

                        Comment


                          BGFV paying off well tonight after earnings beat. Setting a limit stop tonight just in case. All the sporting goods and firearms stocks have been good to me during this crisis. I almost bought AMD this afternoon but had hesitation. I regret that now, that thing ripped after a beat as well.

                          I love a well executed earnings season!

                          Sent from my SM-G986U using Tapatalk

                          Comment


                            Originally posted by TwoHighways View Post
                            looming sovereign debt crisis keeps us the fundamental reason to own precious metals, but if shtf, I’m not sure what good owning them will actually do for anyone. Nothing ever rises in a straight line though and expect a pullback (at least in silver) pretty soon. I got in a $14 and was happy to cash out at a 58% return. I’m pretty bearish about the sustainability of what we’re doing. The powers that be have kept the house of cards up far longer than I anticipated. I thought 2008 was when the whole system would come crashing down.
                            If shtf I'd say SLV and gold tank also. But they will rally up hard soon after.

                            In 2009 SLV went pretty much straight up to $46. I think we rose faster this time.. I sold a little over half my calls.


                            It will get real interesting if markets crash again. One would think there would have to be a limit on how many trillions they can print. I thought it was scary in 2008 but now they've printed a ton more..

                            When this house of cards comes down it's not coming back up IMO. They are setting the stage for doom then one world order to "save the people" I just hope the stage stays set for another 5-10 years before falling.
                            Last edited by RiverRat1; 07-28-2020, 06:31 PM.

                            Comment


                              Originally posted by AJMag View Post
                              Most of my bad trades are from getting emotional and impatient. A lot of time they do go up like i anticipate, but they aren't done going down and i get too nervous to wait it out.In my IRA I'm more fundamental based because i don't watch it as close as my brokerage. In that one i run pretty much all technical or speculation with less concern for fundamentals. It all varies based on what i see. Lately, riding the 9 ema has worked. Others i play based on support and resistance levels. Then I'll mix in some momentum watching RSI and MACD. My plan is determined by a combo of daily, hourly and 5 minute charts depending on if i can make a day or swing trade. Occasionally I'll do a high dollar stock if the move is right, but prefer anything under 20 a share with lots of volume. I'll go in weekly and run the scanner for low dollar, high volume, and various market cap sizes, then compare that to net changes, rsi below 40 and MACD convergence and divergence. Looking for those stocks that just pulled back on the dailies and beginning the crossover to the upside. Those are a little harder to find so you have to watch and be ready, but can get a nice 1 or 2 week play. Otherwise i watch for more of a scalp over a couple of days, make a quick 5 or 10 percent on my p&l and move to the next.

                              Sent from my SM-G986U using Tapatalk
                              New to the game. What is this scanner you’re talking about?

                              Comment


                                Just thinking back seems like every Pres Election year stock goes down before NOV,,Have not researched facts just off old memory...

                                Comment

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