52wk high list

Discussion in 'Trading' started by silk, Sep 4, 2003.

  1. silk


    I havn't crunched the numbers, but i have a feeling i might be $500,000 richer if i never shorted stocks on the 52wk high list or bought stocks on the new lows list. I have this on my cardinal list of rules for day trading, but somehow in the heat of the battle i still often forget this rule or kist fail to realize the stock is making new highs or lows.

    Anyone have similar experience?
  2. DblArrow


    Same problem. For some reason after a good run up (or down) that top is just to hard not to take, even though I berate myself for the loss, and taking what is generally a countertrend trade; I find I continue to do so. Although I must say that I am learning to just take a few ticks and then bail.

    Make 'em pretty, Chris
  3. Great point silk. They are making those new highs for a reason.
  4. I'm guilt of doing the same at times. It's so damn tempting :D

  5. It's for the simple fact that it is easier to trade counter-trend than get in on a trend that already started without you...

    TM Trader
  6. Don't agree with you guys. 52 week high list can be wonderful to work with on the short side, but you have to be selective and screen the stocks with further parameters.

    Example: Ericy is now on 52 week high, whereas their competitor NOK is at quite low levels and there is a good correlation between them. Also I consider NOK fundamentally superior to ERICY in every aspect. So I will do a pair trade and short into the strength of ERICY.

    IMHO a lot of stocks at 52 week high are just ticking time bombs if you take overnight positions on the long side. Take a look at VISX.
  7. about to get burn by SNDK this coming Friday morning.

    SNDK gives true meaning to 52 wk high.
  8. Hi LSU,

    I don't really understand what you mean(due to my bad English). Please specify what your intention is.

    Have played SNDK several times in the past, but haven't been looking at it for some time.
  9. Silk,

    Thats a bit surprising coming from you.

    I look at 52wk hi/lo everyday, not to fade but to go with the flow especially f the big boys NEED to buy/sell.

    In fact, I'm looking at one this morning. Can't give it away but it sounds like, "pigs be snortin'".

    Happy Trading.

  10. Now take a look at UTSI. This is what I mean by ticking time bomb.

    If you now hang in there on the long side with an overnight position due to 52 week high, you are getting hammered like a piece of meat. :cool:
    #10     Sep 9, 2003