>>>I read those rules today and thought they were good.
Terrific; & thanks for posting. Also, the reference to President Roosevelt in #39 (roughly-don't let your liberal convictions cloud your market judgement) indicates they may have been written 55 or more years ago! The mm's were after stops then too <g>
My favorites (meaning the ones I should keep on top of my list) #4, 14, 40, 41, 47, 49, 50. Nos. 33 & 36 are new & glad to have them. (Patience is not my forte, but am working on it. So i don't mention those involving exercise of patience.)
I think you can develop a trading system around these earnings-less or low-float/volume stocks as long as you don't watch them tick by tick
Precisely, I do watch them tick by tick. So, I have to tweak that. And the approach outlined sounds good. Thank you. As someone posted recently - you are a wonderful teacher. Have never traded that way & would like to give it a try.
Also, examples from the recent past are very good to get. Like, here it was & you might have done this or that.
EFNT, specifically, I can't quite untangle.
It went public July 15; tripled 1st day then settled back & range traded, as you mention from Aug 4 to 24
The stock was trading between 35-41 for weeks with ~200k-300k average daily volume.
Oh, wait, I'm beginning to get that part of it. Yes,
if you had entered a limit buy GTC order @ 36 and once filled, a limit sell order @ 39, you would have made ~10% in the stock while the stock was range-bound.
Absolutely. The part that's confusing me is the parenthetical
(stop at 34, below recent spike-low)...
because the spike-low to 40.625 was 4 sessions ago, & how could that affect choices made earlier in August? Well, obviously, it doesn't, but there's some short-hand connection in your mind after the fact that isn't apparent.
Likewise,
in anticipation of breakout, you could have also left a limit buy-stop order at 43...
and done very well as it soared to 65 with limit-sells in place (that 2nd day 8/26, incidentally is exactly what i thot was happening to CCRD Thursday! famous last), but how does that connect with
the recent spike-high?
now, case-study ongoing. I might suspect another breakout, but it isn't exactly range-trading. A limit-buy at 52 might be a way to go, but i would probably just alarm the volume & Friday's high (purely hypothetical) & act in the event. It also has a small gap to (probably) fill because it wasn't breakaway on Friday.
Sorry this is so long!
I haven't read Nicholas Darvas "How I Made $2M.." Amazon doesn't have it, even in willing to search for out-of-print. Will do some further checking. I ordered the other one you mentioned, also 500 pages of Adam Smith.
Dorothy |
