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For me, the birth of a new thread mostly represents a challenging and exciting proposition, affording the participants ample opportunities to share ideas, to enlighten each other and to profit from the gyrations of the market. Personally, I'd like to see this board as a meeting place, an alchemy of intelligence, experience, energy, substance and style. From this very prosaic and inescapable introductory paragraph, I will attempt to define the scope and breadth of our discussion.
We will mostly focus on a specific segment of the market that would reward us with the most profitable position trades and occasional day trades. Currently, we are looking at
1. Nasdaq stocks trading between $5 and $45, with strong upside potential in the next 5 trading sessions propelled by one or more catalytic events (pending good news not factored into the price, strong upgrade, sympathy play, laggard in a strong sector, earnings, split, breakout…..)
2. Float < 5M
3. In a strong sector (top ten in IBD)
4. At least 1.5x avg daily volume
5. Favorable risk/reward ratio, a minimum of 65-35 in favor of reward
6. Trading above 200ema for at least several days, preferably at or near 50ema and in the process of trending above with momentum
7. Not too extended - less than 50% above 200ema
8. In breakout plays, near 52 weeks high, in a strong uptrend to break it
As well, I like to emphasize that this is a thread of elastic and flexible approaches. If the bb penny market becomes strong again, we will focus on it, for instance. Regardless of our segment or sector focus, the preservation of capital and risks management tend to take precedent over the efforts to maximize profit. Also, we would be making comments on the broad market, IPOs, sector index strength and other related issues periodically, including but not limited to calls, puts, shorting strategies.
I would never have felt the need to create this thread had it not for the encouragement of many of the founding members: Thomas Allinder, LAand Paris, Craig K, mod, kathyh, Farokh Ali and many others; I am especially indebted to both Thomas and LA, whose keen minds and uncanny knack have kept us at least ½ step ahead of the rest of the trading world. Each of the other members possesses tremendous strength: Craig's trading acumen and trenchant thinking, mod's incisive understanding of private placements and most every trading issue, kathy's thorough, penetrating dd, Farokh's intellectual faculty of uncovering momentum highflyers hours, sometimes days, before the fruition. A virtuoso group of traders and investors working together, dedicated to the enhancement of wealth, a deeper understanding of the market and the enrichment of the quality of life, for us as well as for anyone else who cares to join us . This is as close to a trading Utopia as I can think of; I really couldn't have asked for more.
We invite civility, kindness, sharing of knowledge. Guests, lurkers feel free to join in. (Anthony, Lance, , Dave Gore, Wayne, Auric, Andrew G, Andrew H….etc.)
We strongly discourage excessive embellishments, hyping, spamming, misoneism, misogyny, flaming and unnecessary or uncivilized arguments. |
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