A new strategy to Test. After watching a video that Tim Sykes posted on his youtube page it got me thinking of my own strategy to test. It is nice to learn an experts strategy and if you can learn it, it will absolutely benefit your trading. My choice is to try to develope my own strategies based off of what I've learned from experts and experience. Experience is something I don't have and I have only learned off of basic stock market trading (Industry Norms) and Tim Sykes. Tim Sykes posted a video regarding his "Spikeability" DVD and well the strategy it made me think of is below.

I will update with tickers that I have tested. This strategy will be started on a "fake money" account before tested on a "Real Money" account.

1. Scanning: Looking for the stocks that are in an uptrend or are in a bounce momentum play. My scan consist of looking for: 

• Vol Index (50% or more increase in the past day)
• % Change ( an increase in price action of 5% or more in the previous day)
• Volume (250,000 shares Traded or more the previous day)
• Stock Price ($0.50 to $6.25)

2. Looking for stocks that have a catalyst (good news, earnings, analyst report out, etc.)

3. Higher than average trading on an UP Day

4. Closes 5% or higher on Higher Volume

5. Little to NO Resistance Long or Short Term (Preferably filling gaps, or new highs)

 

This is a strategy that I will be working with to fine tune. Will update with details.

My starting "fake account" will be $200,000 and I am looking to trade $10,000 a trade and gain 5% on every trade. Discipline will also be worked on to take 5% and as soon as it is hit I will get out. No hoping or guessing if it will go higher.