Momentum Stock Trading

Discussion in 'Educational Resources' started by WmWaster, Apr 17, 2006.

  1. no wonder, aapl is maybe da best stock to trade intraday when is trendin higher....enough liquidity to scalp 100s if not 1000s of times 10-20c 'till session ends.
    #11     Apr 17, 2006
  2. Yes, it is best to focus on a few (high-confident) stocks. Concentration build wealth.

    By the way, how much capital that guy starts with?
    #12     Apr 18, 2006
  3. As far as you can :D
    List all of them.

    Thank you very much in advance.
    #13     Apr 18, 2006
  4. #14     Apr 18, 2006
  5. Most well known and successful systems use momentum. The most famous IBD CANSLIM system is an excellent example of using price and earning momentum to trade.
    There are many variations of the momentum system , Darvas was also using momentum plus fundamentals.
    At a very simple level if you just concentrate on the top 1 or 2% of the momentum stocks by yearly growth rate , you will find the double baggers and triple baggers in them.
    Look at ERS, PWEI, TIE, DXPE, NTRI, BTUI, HOM, IIIN, BDCO, ANAD, ENG, GRZ, EVST, MYOG, HANS, ZOLT, RACK and some 170 stocks like these and you will likely get next momentum stock from them.
    All momentum systems are basically same with slight variation in entry techniques, some enter on breakouts, some on weakness or retracements and some put buy stops at higher price .
    The problem is do you have the risk profile to trade such stocks as they have high volatility, plus buying something which is up 100% or 200% already requires some nerves.
    #15     Apr 18, 2006
  6. Interesting thread, subscribing.
    #16     Apr 18, 2006
  7. tj1320


    Yes, very interesting. How about downward momentum trades using put options? For example: a few weeks ago when I should have purchased puts on Baush & Lomb (BOL) while it was around $60 a share and it is now around $47. How can big downward momentum plays like this be predicted? I had a feeling before BOL took a dive that it would go down some more, but I had no clue it would dive like that. I'm obviously very new to this but there HAS to be a way to make consistent gains by playing put options on stocks that are performing poorly,consistnely, and quickly. I'm talking dropping from around $35 to $28 in no more than a month.
    #17     Apr 19, 2006
  8. Here's my ideas.

    Finds stocks which have risen sky-high (or all-time high). Then put them on the watch lists. If one stock can break through 2 major levels of supports with high volume (from its very top), it's time to do some puts. :)

    You will have a higher chance to win if you do so in bearish market, so you'd better use this in bearish market. In bullish market, do calls might be wiser.
    #18     Apr 20, 2006
  9. Trolling for new devotees? If you could make "a steady 4 to 7% net daily in stocks" you'd be the richest man on the planet. By far. But on another level, anyone who believes you on this deserves you as their guru.

    There are hedge funds consistently returning less than 15% PER YEAR that are managing billions.
    #20     Apr 20, 2006