I have tried this theory, but only as one of many diversified ways of daytrading. My victories were with, sysf, syqt, gadz, halo, ctxs, esol, peri, mo, pcam. My losses were with cscc, prms, coms, . I went day trading from an average of $10,000 on a trade to about $30,000. I just got tired of waiting for the stock to go up 2-3$. It is easier for me to wait for 1/4-3/4 point return. My only prerequisite is that I take a company that has very high fundamentals. Usually these companies can be found in tscn.com and also in Investor's Business Daily under EPS which I like at 80 and above and relative strength is weak. These companies are also reported in Zacks to have at least 30% projected growth in EPS for next year. For extra measure I would also like them to be on a list of 250 fastest growing companies for 1997. (i.e. Hoover's, or Smart Money or Individual Investor are good sources). This way if I don't get the half point bounce I can hold it a while longer without getting too nervous. You would be surprised how many good companies out there tank but are fundamentally sound.
My second way of daytrading is using the same companies over and over again. I have played with CLDR, MCAF, PSFT, ATML, ALTR, HAL, AMD, TSRI, etc. Check out my homepage for more strategy: geocities.com. |
