GMXR first caught my attention last night as one of only two Dry Up Stocks for today. As I watched price cross the 20 SMA (30 minute chart), GMXR began to look interesting (around the $41.50 USD price point). Tradingbug and I discussed GMXR early this morning while chatting in ET's Chatroom. At the time, GMXR had already moved about 75 cents, but had done so, on only 8800 shares. I decided to pass on the opportunity, but Tradingbug (and a few other people) jumped into the trade. I can't seem to get my mind around price moving so far on so little volume. Something I still need to get my brain around I suppose. Nice trade everyone. - Spydertrader
I'm glad to hear that you will be becoming a regular contributor. The transition into trading and then branching out is a normal one. As you do cycles of trading you build a very high value template that can be used almost anywhere. The EOD world is where most people begin simply because they have other obligations during the day. As A person begins and formulates a business plan that is more focussed on his initial capital than anything else, he sees that getting the most out of initial capital is the goal. EOD data is best to work with at this time. And for debriefing it is possible to go to 30 minute charts after market for looking "into" the timing of decisions. Here in this thread are the culled lists of the opportunities. As time passed here you got the meaning of "repeatability" and "reliability". So EOD is where a person best begins to get the job done. To balance out two concerns of EOD right from the beginning is important; they are: timing the entry and the rate of money velocity of trading. EOD puts you in later because the BO has occurred the am before you go in. So this is later tahn the full time traders go in by one day. Similarly you may have a later exit, but often the "second chance" applies. The better balance is achieved when an EOD trader, who has a job or other concerns during the day, recognizes that he is working toward having money just in time to enter the possibility that is before him day after day. This means really leaning into the Daily Analysis and making money available for the EOD entries that have shown up. What you get for this is a very high quality rotation of capital. you enter a little late (meaning it is a low risk entry for a run up already just begun) and you take yourself out of stocks to have money (this may be a somewhat earlier exit than the peak). The key effect of this is that you do more trades per year. 20% more is likely. Adding 20% to the compound interest formula exponent is a lot different, in effect, than the fact that you have a somewhat lower average profit per cycle. The exponent is more important it turns out and EOD traders can keep that in mind as an incentive for doing the Daily Analysis by working hard at it. As you begin this effort. You will notice that the comparison of sheet after sheet day after day tells you that some columns are getting the once over lightly. You will not want to think up stuff to put in the columns that are on the right side of the sheet. You will feel that there is not much to say because it is all on the chart and the same old thing. That is not true and after a while you will devote two rows to each stock in order that you DO have enough room to get the facts down. So start with two rows and work faster to annotate the trend and the formation column and always fill in when the buy and sell is coming up. I annotate my charts in heliotrope with this info. I calculate my stops using the three spike average and put that info in the right margin. So how do you get the evening effort down to a smaller amount of time? You do it with determination and it gets done really fast. Annotate your charts with where the Stoch turn up will occur, where it will cross 50, where the DU will begin and end, and where MACD does it's thing. On Sunday's, I line up the whole week this way. You, then do an adjustment as the week goes by as the batters you have lined up for each stream of capital go to bat. Have a couple of pinch hitters in the line up as well. See page 17 of the 08JUN06 "putting the pieces together" where four teams are batting with three hitters each. All set up on Sunday. All of this is the oppositie of the American attitude on education and going to school. Students do the least they can to get by and the first thing they do every year is igure out the teacher so they can get by with less effort. Making money is like doing an individual sport practice. You are not competing in practice, you are just making yourself more and more capable. There is no competion with PVT trading either. It is a matter of having returns that are unbelievable to the conventional orthodox fincancial industry foundation. PVT makes in a week or so what others make in a year. EOD trading using Qcharts is very workable. You can move the forming bar to 1/3 of the way from the right; do three levels of channels; show and annotae the indicators; and you can put rays on the volume for DU FRV and Peaking. I have been on a beta system that will be introduced soon that is capable of back testing the paradign we use as the alternative to the conventional orthodox financial industry foundation. That convention was invented a long time ago and it is going to take a long time for it to die among its practitioners. We do not have that problem and now the first back testing stuff is coming into being on an EOD level. Humorously I got to have an operator use it for checking it out. Naturally, the read out was wrong and the operator went through it with a fine tooth comb and his people got to see for the first time how much money can be taken out of the market pool (using a lousy universe to boot). Anyone beginning to make money using this paradigm (pool extraction) can start with EOD and keep their jobs or other interests. You make money by doing the drill of daily analysis and setting up and maintaining your your trading plan. you do enter a little later than full time traders and that is good from a risk point of view. You keep making money available for new entries and that keeps the exponent of the compound interest formula pumping along. Your business plan will show you that several things are coming up for you. First you take out your original capital and use it for what it could have been used for if you were not trading. Your vocational income line (roughly horizontal) is going to be crossed in the near term. You do give up your job when your ability to drain profits to replace your vocational income is sufficient. This is well after the point where the draining would flatten the trading equity curve. By EOD trading for a while you are building your mind primarily. A pool extraction template is build that surrounds and blocks you from continuing to revert to the old and conventional orthodox financial industry foundation. Template in hand, capital building from EOD, then full time trading, you are then ready to reapply the template to the commodities market. This leveraged activity will change the emphasis of your efforts. You will be adding much more capital to your stock trading as time passes. This is something that is very important to keep in mind since for a few years this will be where most of your capital resides in your stock accounts. Later you will be moving blocks of capital to sector rotation strategies because of the limitations of doing partial fills in any individual holding. Why don't you go directly to trading commodities? You are not equipped mentally. It is not a possibility at all. Go to the ES Journal and just read the last few days and give yourself an explanation from real people who cannot do the stock trading that is done here. They are trading ES without knowing how to do this kind of stock trading. If you are not convinced by reading a few days of stuff over there, then read more of the journal. At some point you will personally understand that EOD stock trading using PVT builds your mind to be able to transfer to full time stock trading which enables you to have a real time mind for using PVT. Having a fully built real time mind in PVT means that you have a template for going into seamless continuous trading (SCT). There is a world where people set the job done in many kinds of trading. The category is "traders you have never heard of". I went to an Expo, they had one session called "meet traders you have never heard of" . There were empty seats and other conventional orthodoxy sessions had SRO. What you are building in EOD will get you to the speaker's panel in that kind of session. You will be talking their language too. Most had never met each other.... and they found out that they thought alike... and said the same things within reason... None of them used the conventional orthodoxy. Do the EOD and have a business plan. Do the work. Get the template down cold by building your mind in order to no longer revert to the old and antiquaited convention. These journals are the walk. They make the record for PVT.
Jack, I'm very happy that you took the time to reply. I believe what you are doing here is a noble effort and to be honest of equal importance as to what any of the modern or historical philanthropists have done. I eagerly await the final outcome (books, videos, web site) of your project. Have you considered an autobiography along the lines of Conrad Hilton's small paperback available in every Hilton hotel for free? I consider Hilton's book to be one of the finest written regarding the entrepeneurial can-do spirit, and I could see yours easily occupying the space next to it in my library. John
Spyder: I just wanted to post an observation about DU volumes. I noticed that the calculated DU values are quite a bit lower than before the holiday related light trading days of Wednesday and Friday last week. This is to be expected from the WL calculations (unless there was a way to exclude these periods in the script). However it seems that one may want to allow for this as it may be "artificially" limiting the amount of DU candidates if the reduced holiday related trading was somehow excluded. Rick
I assume we are still posting what our watchlists are to confirm that they are similar. I updated my Hershey Final Universe to equal Spydertrader's mentioned above. I added my cleartables scan (using the posted settings) with new stocks for today to a HotList watchlist and performed the Hershey Equities Rank SCAN v. 1.0.0 obtaining this list: ACOR ANGN CAL CHDX FTEK GROW ININ JCTCF KNOT LQDT MIKR NVEC OMRI SLW SMSI Culled the list per the 4 numbered steps. Performed this: Hershey Equities Dry Up Volume Scan v. 1.0.0 followed by this: Hershey Equities Rank v. 3.0.0 and got this: TXCO as the only tradeable stock today. Have I got it, or did I miss something?
John, The latest ChartScripts are: Hershey Equities Dry Up Volume Scan v. 2.0.0 (Three Month) Hershey Equities Chartscript Version 4.1 They both use 3 months for the DU calculation, as opposed to 6 months in the DU Scan 1.0.0 and Equities Rank 3.0.0. Regardless, TXCO is what's on my WL for today... spooz
WNR breaking out. VLO active. Inventory report out in a few minutes. ALJ may follow. I still own ALJ from many weeks ago and added to my BTJ this morning. Bought PEIX and ALY is perking up also. The whole sector is moving.
spooz, Thanks a million! I'll adjust for tomorrow. No need to redo today as we have the same stock on the watchlist for today.