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anituchka
Registered: May 2010
Posts: 101 |
04-21-12 06:22 AM
Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.
I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.
I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).
On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.
I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.
Thanks!
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cactiman
Registered: Dec 2011
Posts: 962 |
04-21-12 07:27 AM
Quote from anituchka:
Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.
I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.
I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).
On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.
I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.
Thanks!
If you want to make money in "a couple of hours" I think you're better off sticking with Futures.
The % move over that much time is much too low in stocks.
On a super active 6.5 hour day a stock will only move 2-3%, and on most days they move less than 1%.
You need to buy a lot of shares (at $600 each for AAPL) to make any money off that.
"Swing" Trades in Stocks are normally over a period of 3-15 trading days.
If you want higher % gains over that kind of time period, and at a much lower cost, look into Swing Trading with Stock Options.
For example: I recently bought a June Call Option Contract for 100 shares of MCD, when the share price was 98.24. The shares would have cost me $9,824, whereas the Option cost me $157.
If MCD goes up from 98.24 I will make roughly 38 cents for each $1 MCD goes up.
If MCD goes down or sideways my Option's value will gradually fade away to $0.00 on June 15th.
Also, the most I can possibly lose is $157, so there's built in Loss Control. This eliminates the need for Sell Stops and all the Whipsaws they cause, etc.
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Mysteron
Registered: Apr 2010
Posts: 431 |
04-21-12 04:03 PM
Quote from anituchka:
Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.
I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.
I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).
On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.
I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.
Thanks!
Personally I choose stocks that are not high priced.
There are many stocks in the S&P500 currently with price not too low or too high, with adequate average volume and sufficient daily range in the recent past:
AFL AGN AMGN AMP ANF APA APC ATI
AXP BBBY BHI BTU C CAM CB CELG
CERN CHRW CL CLF CNX COF COG COH
COST CTSH CTXS DE DO DVN EQT ESRX
EW FCX FDX FLR FTI HAL HES HOG
HOT HP JOY JPM JWN KLAC MCK MON
MOS MPC MUR NBL NE NEM NOV NSC
NTAP NVLS OXY PCAR PH PM PNC PRU
RDC RHT ROK RRC SHLD SLB SNDK STT
SWK TDC TIF TROW TWC UTX VNO WDC
WFM WHR WLP XOM YUM
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anituchka
Registered: May 2010
Posts: 101 |
04-22-12 07:33 AM
Thank you. All excellent advice! I haven't looked into options yet, for some reason they seem too complicated for me. Maybe I am wrong, so will definitely research that.
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