The value that this gives me is not to be underestimated. A constant flow of stocks that are in play and printing higher or lower at that very moment. Think about it for a moment. I don't have to wonder about chart patterns or project into the future about a stocks possible direction. It's doing it right now. END OF STORY. In fact beyond ascending or descending triangles I couldn't name a "popular" or doji pattern if my life depended on it.
Not having to think about bear flags, haramis, cup and handles, wedges or double bottoms ( I had to look up those names by the way) means I can focus on actually getting into the trade in a timely manner instead. Getting in when momentum is taking the stock for a ride is where the money is made.
Once I have a few movers then I stick with them and trade the momentum starts and reversals. If I see something pop up that has more potential than something else I'm currently in then I'll jump ship and move over to it.
If you look at my charts you'll see lots of good entries. That comes from being in the right place at the right time and not hesitating or thinking about why it's making new highs or lows. Just trade it instead.
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4 comments:
hi scott
what are the minimal condition in a stock to become a mover?
what make you move from one mover to another?
thanks
yaki
Yaki- a mover is a stock with momentum behind it. It keeps making new lows or highs. It's in play.
If I see something that has a bigger trading daily range and looks like it has more potential or has or hasn't yet make a big move I'll move to it. Playing reversals after a stock has moved a lot is an excellent strategy.
...not to mention your experience allows you to trust that the breakout will continue and that you likely are not buying just prior to a reversal or pullback. It is natural for a novice to not recognize that they are the "last one in" when the smart traders are selling everything into the strength!
BCT- Getting in with the momentum and not hesitating brings you much greater success. I never want to be the last person standing around when the music stops.
With my style of trading there is frequently no signal to sell other than 1. the profit I've got and would be foolish not to take it or 2. watching the clock to see when a new candle is about to form. I'm not greedy, I'm just taking what the market is offering me to take at the moment.
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