For example when there has been some consolidation and the volume has been relatively low, and then as you watch the stock you see the volume starts to rise and the price reacts and breaks out, at this moment you know how the bigger picture looks like, you know that there are some important levels in the larger timeframes, you know how the sector and related stocks stand, you see that the price gathers inertia and just blasts through that levels... that's what I call a potential activity. If you are lucky, the activity is for real, it turns out (in hindsight) that some large players were involved in the stock, then the public, but since you recognized the initial move as a potential opportunity, you took the risk and positioned yourself early and you just watched the stock move in a straight line and all you had to do was to wait patiently for one or two corrections and get out as the price climaxes If you are asking if I am using some special tool to spot activity, I don't. I just watch a list of stocks, sometimes their charts look like a mess and you have no idea where they are going. But then you see something, draw some trendlines, and start to watch closer. Once they break the lines, you put your finger on the trigger and wait... The difficult part is not to do anything, when there is nothing to do and to get out of the stock if the move is not what you expected.
I could not agree more. In today's game it is deadly to be stuck with one instrument. The whole idea behind the tools my firm makes is that you have to trade multiple names
Some good discussions here on the thread... I think it's probably a good idea to have one or two "go to" stocks no matter what your trading style is. I try to focus on stocks that are "in play" that day but sometimes I have trouble finding those in play candidates that meet my criteria. In that case it would be nice to have a couple of go to stocks... -Guru
For those of you who do successfully trade one stock each day do you find yourself overtrading? Trying to capture every tick or just be patient and wait for the trend?
Capture every move. A lot easier and safer during a shitty trading environment like now. Calling a daily trend is great, but the pullbacks & reversals are just too much. Better to get out at intermediate tops and bottom and catch the pullbacks & reversals. I have literally milked stocks for every single move on good days. And the 3 favorites I have are 1 mil ADV. Imagine one of the big boy stocks and trading it successfully with 1000-5000 share lots in and out all day. Sick money.
If the conditions are right, you have to hit it over and over as long as the set up keeps occuring. Some days just flat out suck , but days like today make trading a single stock enjoyable. An old trader once told me KISS. Keep it simple stupid, don't try to scan 1000's of stocks to look for setups, Find a few you like, live eat and breath those stocks until you know what the time and sales are saying as they go off, find your edge, and trade them or it only when the probability is in your favor.
maybe some of these will help: Nasdaq - stocks http://dynamic.nasdaq.com/asp/usmostactive.asp?exchange=NASDAQ&mostactive=adv&site=NASDAQ&afterhour= NYSE - stocks http://dynamic.nasdaq.com/asp/USmostactive.asp?exchange=NYSE http://host.wallstreetcity.com/wsc2/market_statistics.html?Exchange=NYSE&template=msnyse.htm http://stockcharts.com/def/servlet/SC.scan
...perhaps you know this story, but your handle obliges me to repeat it. At the onset of the second world world war, Captain Arne Arnesson of the Swedish Air Force found himself stranded in Great Britain when the Germans overran Scandinavia. He immediately volunteered for the Royal Air Force and distinguished himself as an air ace, shooting down many German fighters in the Battle of Britain and during the air campaigns in Europe. After the war this celebrated hero embarked upon a speaking tour. At one engagement at an all girls school he was asked by a sweet young thing, "Captain Arnesson, what was the most frightening situation you ever encountered during the war?" He replied, "I vass on patrol flying covver for a bombber sqvadron vhen suddenly out of de sun come dese two fokkers flying stright at me!" The young ladies in the audience tittered, prompting their matronly dean to comment sternly, "Ladies, the Fokker was a common German fighter aircraft." Whereupon Captain Arnesson corrected excitedly "No! No! Dem fokkers vass Messerschmidts!"