Which US equities to pick?

[Mr. Charts]

I suggested earlier volume could be anticipated.
On the "Trading the US the Mr.Charts/Naz Way" I posted my watch list before the market opened this afternoon.
I traded the three of those stocks which fulfilled my other criteria once the market had opened. The results are shown on the thread.
Loss -21
Profit +64
Profit +70.
If anyone opens a five minute bar chart with volume on those three stocks, they will find that,(apart from the late volume on RMBS y'day), all had huge increases in volume over yesterday's figures.
Of the seven stocks on that list which gapped and fulfilled my rules, five, unsurprisingly, showed far higher volume today.
Huge increases in volume CAN frequently be anticipated before trading even starts.
Obviously you do need to learn several other skills to create profits out of such situations.
If anyone reading this thread is interested in volume, there is some interesting material, including, of course ( ;-)) !), my views based on years of experience trading US stocks, on the thread entitled, "Volume".

 

[truvor]

I have tried to trade in ADBE, but I found it extremely volatile, which cost me nearly 2000 bucks. It is good I have 50000$ on my contest account. In real life trading in ADBE would have been suicidal for me.

 

[Mr. Charts]

truvor,
Forgive me, but it sounds as if your risk management and money management need a little more thought.
To be in a situation where you would have lost 4% of your capital suggests you are either too long in a losing trade or your position size is too large. There are other possibilities, but in my experience those are the two most likely ones learners make.

Anyone looking for those two threads I mentioned:

http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=7687&highlight=Volume
http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=7329


HTH

 

[Grey1]

Truvour,

ADBE was not an exceptionally volatile stock to day ,, ADBE range is less than 2% of its price ( upuntil Now 7 UK time ) .. This is a normal behavior of most NAS stocks.. Where you have gone wrong is in your position sizing than the choice of stock..

ADBE is an ideal trading stock for day traders..

These are few issues you have to understand before trading :-

1) Identify the risk
2) measure the risk
3) manage risk

Start with study of volitality and you are on the right direction ..Avoid very VOLATILE stocks at all costs... Trading excess volatility is like SPEEDING or even worse drink and driving .. Only few survive..

 

[truvor]

Grey 1, you are right. I have just got overexcited with a possibility of increasing my trading capital by about 10% during one trading session. Therefore, I opened 100 lots (half of my trading limits) in a single trade...And here are the results...

 

[Baruch]

Read this:

http://www.investorsintelligence.com

 

[Roger Carton]

Has anyone looked at Xerox recently? I think it is under valued.

With the weak dollar US products become cheaper to overseas buyers which will increase exports and give them growth prospects. Applies to other US companies as well.

On a different tack, if the dollar is so weak, it will make Americans less likely to travel overseas and go on domestic holidays, so how about looking for companies in the US domestic tourist market?

Roger

 

[Grey1]

Roger,

Why do you think XRX is under valued ?

regards

 

[Roger Carton]

Hi Grey1

Back in '99/00 XRX had a value around $60, it fell to below $10 in'01 because they had misread the market. It has taken them a couple of years of downsizing and reorientating their marketing strategy to get back on track. Look at the chart over the last year and you will see a steady but slow upward trend, but it is taking a long time for investor confidence to return.

I believe they have truly turned the corner and are now commited to strong growth, take as one example their recent technology agreement with Dell which will increase XRX's market reach. I believe the management are focussed on strong growth in proven markets and tie ups with outfits like Dell shows the way management is thinking and bodes well for the future, just my opinion of course.

Roger

 

[Grey1]

Roger,,Thanks for your Views..

XRX has had the worse profit margin in its sector with the worse 5 years sales growth compare to KRON,DBD,PBI,HNI.. KRON 's EPS is estimated to be twice larger than XRX .. ( so why not go for KRON )

I have few long term postions on US equities but am not quite sure on XRX after my over night research

PS:-- XRX is around 3% from its 52 week high ..Notquite sure if it is a good buy at this price..

regards

 

[Dow Dog]

Try CBS MarketWatch

 

[truvor]

I must tell you the truth, lads, I am about to lose the contest for the second consecutive time. And I never rose above oncreasing my trading balance by over 30%.

 

[BBB]

Oh dear. Maybe you should go to Darren Winters free seminar and learn to get rich quick!

 

[artfuldodger1856]

to arrive at a basket of suitable stocks for trading, i use a free screener (e.g. yahoo) and select all stocks having a price range $30-75 and a volume of 500k and then use a simple formula:

float / avg 3-month volume

i then sort the list lowest to highest. stocks having the lowest float to avg volume ratio are very volatile. nice swings to play. the price range insures decent intra-day moves and the volume insures good liquidity.

 

[truvor]

Artfuldodger,
Does your strategy work? How much money have you made using it?

 

[dglynn]

artfuldodger1856

Perhaps I'm a little green, in your formulae could you clarify float?

DaveG

 

[jonnyy40]

The number of shares available for trading

 

[iq200]

Another decent and very flexible scvanner is www.marketscreen.com. For free service the data is 2-3
days old, but still useful.

 

[tonie]

Is there any FREE!! website out their that tell you prior to market opening which stock's will GAP...i understand briefing.com do so but not yet prepared to spend $25..

cheers

tonie

 

[Trader333]

For Nasdaq stocks this link may help:

http://screening.nasdaq.com/heatmaps/heatmap_pmi.asp



Paul