Hello, Elite Traders. Over the last year and a half, I have placed a chunk of my savings into the market believing that I could beat the bank's interest rate. This last year I have done well in that respect, but my favorite stocks are drying up in volatility. I am not a day trader, mainly because I only keep $10k to $15k in my account. So, I typically keep my basket 75% full of value stocks and "swing" trade on the remainder+margin. My current goal is to test myself and push my account value above $25k and like to use distressed companies that have a lot of volatility for that purpose; with such companies I can usually keep a position overnight "fairly safely" to save my weekly number of trades. Now that my favorite stock is in Limbo, awaiting a court decision in a few weeks, I am not having much luck finding a good filter to find others. What do you guys use to filter the variables?
Distressed stocks that are headed for delisting demonstrate great volatility. You can't short them under $5 though. OTC stocks do also but you can't really typically get filled, the rules are way different for the OTC markets, I learned to avoid that stuff. A guy named Jack Hershey published his stock filtering method. I never could understand his gibberish language but some used it. A fund in the '80's-'90's did 15% annually like clockwork by picking the sector with the best RSI and the leading stocks in that sector by RSI also. They called it sector rotation. The rules didn't allow them to short so they gave it all back when the markets corrected...
The 'perfect stock' to trade is anything liquid. -- any of those that are liquid are perfect to trade...it's more about Managing the trade in the heat of the battle...rather than picking a so-called perfect stock to trade.
I appreciate the responses. I was hoping that you guys knew a really fantastic stock screening tool that I was not aware of, but I may have answered my own question since the original post. Google has a stock screener that seems to have every variable imaginable and also works well on my heavily fire-walled work laptop. I can't believe I haven't seen it before As for finding "the perfect stock", I realize there is no "perfect stock", so please forgive me for being to casual in my first post. To be clear: I am looking for stocks that fit me and my trading style perfectly and better tools for finding those stocks. Until I find my next golden goose, though, this oil market has been wonderful. USO and UCO have been excellent tools.