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All responses Most smiled responses
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Yeah, that's why I'm with a prop trading firm now. I don't use retail brokers.
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asked by michaelfinance
Don't know the company but a reverse split is almost never good short term. I'd get out and move on to concentrate on better plays & not be disturbed. If you had a good reason to invest in this company, you may want to wait for next earnings.
But again, please be much more diligent about cutting losses early. It's almost impossible to be profitable when losing capital like this. I rarely allow a loss go bigger than 5% (usually not even 2%) and that's the simplest rule of trading. -
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asked by glasszz
DAL, which is another airline had a downgrade. Market was looking weak. UAUA was down to mid 12's in the previous weakness. So I thought it could go there again, which it did. I didn't play it perfectly but it was profitable.
I love trading UAUA, it's a stock that respects key levels. -
Not a bad idea but I don't see a proper bottoming action in the stock yet. I'd wait for it to hold onto some sort of gains before going long. Right now it's just bleeding.
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I think the most important thing in "tape-reading" is seeing if people are eager to buy at the ask or sell at the bid. Also, if you see big orders in a momentum stock, that's a good sign. I think watching time&sales is important.
For example, today at one point SYNM's T&S was so pretty when the stock was at 2.34. There were big orders all hitting the ask one after another. I still hesitated to buy there and placed my order at the bid. In ten minutes the stock was at 2.45 without me in it.
I personally don't trust L2 much, there are lots of games played there and what you see may or may not be true. I still look at it to pinpoint entries but there are much more important factors before level 2. -
I never used pivot points, so I can't comment on it. I like things simpler than most technical traders do. 90% of the time my entries & exits are based on two things:
- Stock's behavior around important levels.
- Stock's ability to make new highs or new lows. -
It's all a matter of how aggressive you are. I am an aggressive trader and I like volatility. My position size is simply a function of volatility I foresee in the stock. Also note that I take few big positions, don't believe in portfolios, don't believe in diversity. I hold a few big positions at a time and that's it. This is a risky trading approach and I don't recommend it if you're not good at cutting losses on time.
So, let's say my standard for a position size is based on my most common trade, a short position on a $3 stock.
I take a bigger position if:
- Stock is a large cap
- I have unusual confidence in the stock (Happens rarely)
- Time horizon is longer (In this case I accumulate a big position over time)
I take a smaller position if:
-Stock is OTC or Pinksheet (I rarely trade these)
-Stock is illiquid
-It's afterhours/premarket
-Stock is under a dollar
-Earnings play(I almost never play these)
Hope this helps. -
When market seems to bounce I look for stocks that are fundamentally and technically sound and just took a beating due to general market conditions.
SYNM technically seemed oversold bottomed out perfectly at 200 DMA. It also potentially has news coming.
On top of that, it's one of the most promising companies fundamentally. I trust @stockgod much more than myself in this area, and he says this is his favorite American company. I'll take it.
I am not a long term investor but want to stash 2-3 stocks that may double in the next year. I believe CHTP is one of them, SYNM is another. I may be wrong. Again, I'm not a long term investor. But this is how I decided to pick up SYNM. I like my chances. -
asked by michaelfinance
They're terrible at this stuff. They screw up often but I was able to withdraw successfully.
Again, the only thing Sogo is good for is borrows. -
asked by jeffpat
I found it when filtering stocks at support/resistance levels. You can do so at finviz.com. I do it pretty much every night.
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Technically yes, but Sogotrade doesn't let you short sub 3, which is what I do 80% of the time. So, for me it's crucial.
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You are absolutely correct. Twitter gives you a way to follow and learn from some great traders, if you use it right. So definitely, the learning process is much faster for smart people now. On the other hand though, you face the problem of information overload and risk of following the wrong people.
You can read a bit more about my thoughts on "web 2.0 trading" here: http://bit.ly/6rCRw8 -
I'm a video game developer. My education or job has nothing to do with stocks, I doubt your MBA will either. But in case you don't wanna completely rely on trading for income (which I surely don't), having an extra degree should be helpful.
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This is a common problem with shortselling, we gotta live with it. It's not possible to foresee or prevent this completely, and usually happens on stocks that will most likely fail soon. That's why I tend to take the risk because the potential reward is greater. If you think your shares may be called back and therefore avoid an early trade, chances are you'll be out of the trade the day stock plunges 30% because there will be no shares left to short.
Still, if you want to reduce the risk of a buy-in, these are some tips:
- If a stock isn't available to borrow in many places but it is at your broker, chances are it is scarce, increasing the chance of being called in. You should probably reduce the timeframe of your swing (daytrade even) or maybe not enter the trade.
- Sketchy PK or OTC stocks are most likely to be called in. Even if you know for sure that a stock like this will eventually fail, you may want to stay away from it until it shows signs of weakness. Yes, it will usually mean you won't find shares when needed. So again, I think the reward outweighs the risk.
- Some brokers are more likely to force buy-ins. You can do some research and ask shorters in other brokers to see how frequently they get this.
- Looking at past patterns, you can try to time your entry a little better. If a stock is on its first day of a huge spike, even though you know it will come back below it eventually, it may be wiser to wait as most spikes keep going for 2-3 days. So, finding the balance between too-early-to-short and so-obvious-that-everyone-wants-a-short is the key. The key is being there before everyone else, but not so early that you are exposed to the stock for a long time with a big chance of forced underwater buy-in. Easier said than done, I know. -
Not that long, been about 5-6 years. Basically, until I was trading with my current methodology, I was consistently losing over time. So you may need to go back to the drawing board and reassess your strengths/weaknesses.
If your strategy isn't sound or if it's not suitable to your personality, you're bound to lose. Pushing it further and just thinking that time will fix it is not a good idea.
I've given this link to my own blogpost couple of times, but it's related so here it is once more: http://bit.ly/6ekGEZ -
asked by jeffpat
Slow Stochastics indicator has two components, a slow one and a fast one. It also has an oversold and overbought area. What you want is both of these indicators heading higher from oversold area and fast line taking over the slow line. If you google "slow stochastics" you should be able to see what I'm talking about.
ADX merely measures momentum, if it seems like reversing, it means that the selling pressure is going away.
I don't have a chart at hand but any explanation you find on Google will have plenty. -
asked by michaelfinance
As I mentioned in the tweet, I have no idea about the stock so whatever I say is going to be inaccurate and I don't wanna do that. In these situations my trading gets hindered by the fact that I'm losing a lot of money in one particular trade, so I just prefer moving on without looking back.
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Mostly trial and error of course, but the most important part is, it plays well with my strengths and weaknesses. I detailed it a little bit more here: http://bit.ly/6ekGEZ
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I mostly mean nasdaq stocks between 1 and 5. Sogo isn't good for OTC or PK (never been able to short one actually). And be aware that with standard SogoTrade you can't short below 3. You need SogoElite for that.
And thanks :)
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Loading...Cody’s Bio
Day/swing trader whose favorite thing is shorting overbought momentum.
