I've been looking at weekly charts for this coming week, and was wondering sinse you guys are position traders, maybe you can help me with this chart. CSTR (Coinstar) What is making this stock hit top and bottom if its not the volume from buyers and sellers? Thanks in advance
yes correct. I am not making any assertion that position trading is easy, at least not at first. However, it is much easier for the vast majority than day trading is.
The stock as you can see is rising and falling, but when you look at volume, its flat......yet the stock keep climbing.
CSTR To me it looks like its fundamentally somewhere between fairly valued and overpriced, but beating estimates, even though they were low, got people to cover. With a short interest ratio of 13 and being a low volume stock, its basically a play on hoping for a short squeezes, from the looks of it, IMO. If I was long, I'd take my profits and wait to buy at the next downleg unless I knew it was going to grow earnings. With a forward PE of 24, you can't expect it to up that high unless the future will be better. BTW: I'm what you people call a position trader. Stocks like that are dangerous, though, because there isn't enough volume to get in or out, so you really want to make sure its a real bargain if you are going to buy it. I'd wait for a retest of the recent bottom, or at least a pullback.
Yes, sometimes that's a great opportunity. When the price moves up on low volume, and THEN shorts realize its significantly undervalued, its surprise time, because they see its not going back down, and they get frantic to cover before it goes higher on them. Its a sweet play if you can find it.
I just let them hate. It doesn't make any difference to me, but I was under the impression that we are all here to make money and it shouldn't matter how we do it. Oh well. For the most part I do close out my positions at the end of day, due to the lack of larger BP. I could use my system over a longer time period (days) and make more money, but you need money to make money.
No one is hating. I am just pointing out my view that position trading is a better route for most than day trading. What Mr Jones means by 95 percent losers is not that daytraders are dregs, but simply that 95 percent lose money. There are some people of course that can and do make money day trading. It is interesting here to read your last sentence because it leads to my next point which is that those daytraders who are successful, probably would be even more successful position trading.