Hi guys, anyone feel like contributing to a good list of stocks for us new NYSE tape readers? ( I am a beginner myself, and I will be adding stuff to the list as well, so i hope you new guys will do the same as well, hopefully we can all get a good list of stocks at the end) Let's add a few good stocks that you traded each day that are suitable for the beginners... for example, smooth chart, nice movement, relatively low volume (100,000 - 1,000,000) with price between let's say (10-65) ?
I would like to help, but I'd rather not have a lot of new traders involved in what I trade. Sometimes a 100 share uptick or downtick can kill moves in my stocks.
I've been reading the tapereading threads and am confused by this. I thought that you and Maverick74 looked for strong buyers or sellers in a stock. Why would a strong buyer get scared and stop his buying because of a 100 share trade in either direction? Also, when you say "my stocks" I take it to mean that you have a certain group of favorite stocks that you stick to each day. This is different than Maverick74's method of stock selection which sounded like it was based on finding things in the news that day. Which of those two stock selection methods (sticking with your favorite stocks or finding stuff in the news) would you suggest for learning tapereaders? Thanks.
I dont mind talking trading but I dont want to actually tell you the stock symbols I trade. Remember, I have to make a living too There are a ton of stocks that trade btw 100K-1mil. Keep looking over the list everyday to see if new buyers or sellers entered. Its all about persistence. You'll eventually find your core list.
Chud, There are news stocks and stocks that move everyday. Energy and housing are the big speculative frenzy of the last few years. Check out EQR, D, FRO, GMR. These are all related to oil, energy prices or real estate, watch them trading and choose the ones that fit you better. Make sure you have conversions so that you can front run short sellers until the uptick rule still exists. Avoid X, YUM, VLO, PHM, TOL. The specialists for these names employs all sort of tricks to shake out traders. But most important remember to look for stocks with some fundamental valuation news: EPS, sales, M&A. If the news containt the word "forecast", you probably want to pass. I hope these infromation will save you money during your learning curve. Good luck.
Not every stock I trade has a "strong" buyer or "strong seller" in it everyday. Most of the time, the stocks I trade have a small/medium buyer/seller and therefore I must manage my risk even more. If the stock has a huge seller, even if I miss my "out" the stock usually wont squeeze much at all or the seller will just reload and push the price lower right then (usually happens early on and late in the day). But if I miss the out most days in what I trade, the stocks can squeeze quite a bit. I dont want to be taking 40+ cent hits when I am wrong. I usually focus on stocks that trade btw 500K-1.5 mil shares a day, and some of those stocks have a very high beta. For me, its all about low risk entries, and sometimes a 100 share uptick can cause a frenzy of short covering/buying and I dont want to hold just because I think the stock will continue lower unless I am pretty certain the stock will continue lower very shortly. I would recommend NOT trading the news stocks while you are learning b/c they move quite fast and there will be a lot of noise and it will be hard for the untrained eye to decipher whats fully going on. Thats just my opinion though.