Lots of posts in the chat room:
What's moving right now? PM me
What are you holding overnight? PM me
What do you think will move in power hour? PM me
Who's buying what? PM me
I can see these people eventually fading out of the chat room after their accounts go to zero. If you don't do your homework and rely on someone else to do it for you then you will never pass the class.
You have to have those tickers in place before or soon after the market opens. Data mining for tickers is a must. You can trade directly from Tim's watchlist but you have to be patient and let those tickers show an opportunity to get in.
Soooo a few tips on how to find some tickers to follow:
Look for those volume spike breakouts. Plenty of free scanners out there but start with that 1 day unusual volume that was say...200% greater than the previous day and the close was higher than the previous day. Digest the news, analyze the chart and add it to your watchlist. A lot of these 'happen' in the chat room.
Pre-market: scan for the heavy pre market volume movers with an increase in price, digest the news and analyze the chart.
Right after the open a few minutes after the open, and then a few more minutes after the open: scan for stocks with a price range of 1 to 15.00, has a 20 day simple volume moving average > 100,000 and a 50 simple moving average of < 8,000,000 and the current price is at least 3% greater than yesterday's close. Some of these move up right from the open, some will show up as 3% gainers 30 minutes after the open and continue to move up 5, 7, 10,...%. Plenty of 1 or 2 % dips at the open and then out of nowhere they are up 20% on the day. Just have to scan for them.
Narrow this list down to what is actually moving WITH VOLUME. Low volume tickers can be a bitch and take forever to do anything but if that is your speed then do it.
This is YOUR plan so these are the tickers that YOU should be following. If your hunting for tickers in the chat-room then you're destined to fail.
Tim commented yesterday that if you are flipping from chart to chart to chart is scalping..looking for a quick entry here and there. I was chart flipping after first starting out looking for tickers that were moving NOW. That's not a comfortable way to do things. I couldn't see any rhythm in the market doing things this way. Use the chat room to comment on what you are following or suggestions about what you see as plays. If you are using the chat room to 'copy someone else's homework' then think about it...Do you see their logic (per long or short) in that chart? Do you understand how they interpreted the news in that chart? Dp you see their same trendlines, s/r areas?
You really don't have to trade every day or more than once a day. Find your tickers and let the trade show itself and then take action. If you are following 4 or 5 symbols and see nothing all day, if you have the time to do that, and have not traded because you didn't see anything developing you sill passed for the day because you learned a little more discipline. If one of those tickers is dead in the water affter a few days or something else is really getting a lot of attention, delete that dead ticker or the least attractive one and replace it with what is getting that attention. Nothing wrong with jumping on the same train as everyone else just wait for the correct entry there also.
Peace.
Even if you don't plan on trading a certain stock you can still 'practice' looking for those tickers and simply make a watchlist out of 20 of them then review how they did during the day based on how you scanned or filtered for them.. If half of them had a good run of price action (trend during the day) then you at least are searching correctly... .
Thanks for sharing. I like when Tim says in the chatroom 'you don't need someone to PM you, you need someone to smack you.' Those clueless traders must read this.
Wow, always learn alot from your posts. Appreciate it, Palmer!!!
Great post! Thanks!!
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