Ann, I don't know if you are a subscriber but if you are I put together a pretty thorough 75 page 'manual' about what we are about with examples etc. that you can download from our website in .pdf format. Our strategies are very straightforward and don't need more than the trading basics (although you should know them well).
The manual really goes into strategies that 'work' best with fundamentally sound stocks and with momentum stocks but they are not mutually exclusive. That means that sometimes our 'momentum' stocks will come from strong earnings plays (i.e. EMLX, ADIC) but not necessarily so. They could be IPO's that are hot with not much beyond a good 'story' behind it, a rumor of a contract with a bigger company, or a hot sector with some 'niche' to fill. But NEVER will a stock with projected weak earnings or fundamentals be an "earnings play".
It also explains what we look for in a watch list that would trigger a buy and how we analyze and scan the stocks for the most fundamentally sound.
You will get the best results from just your average support/resistance, moving average breakouts and trendline and simple chart pattern breakouts. You can almost trade your whole life just looking for cups, v-cups, cups and handles and breakouts from Head & Shoulders tops and bottoms. Add some trend indicators (moving average, Directional movement, Money Flow etc) and oscillators, about 6 candlestick patterns, the best execution broker with townshend analystic quotes and charts and you are set.
That is because the 'meat' of the trade is the stock itself. You choose from about 11 a day instead of thousands (which I choose from) and they are already 'wrapped and ready to go' On the rare occasion that nothing moves from the list, there is most likely an earnings play that is 'stirring' before its report. Even if you are not a subscriber you get the same stocks on their second or third day of holding and/or if they hit only the second or third day. Also many, but of course not all, the plays discussed on the thread were on previous watch lists or earnings plays.
That is why some of the basic daytrading strategies books are not exactly on the mark. For example one day we can decide to trade one stock from our 'newsletter' list which would be a 'safer, good earnings stock' like INTU or ADBE and may or may not also trade a 'powerhouse' of volatility like BRCD or NTOP. We would probably hold ADBE but we would not hold NTOP or BRCD. You should at least read some of the past posts at marketgems.com so you get an idea of what we do.
But the thread or Market Gems can't be everything to everyone. There is a thread called DAYTRADING FUNDAMENTALS run by Eric, who as assembled in logical and infomative way, a thread based just on fundamentals for day tradin/swing traders, brokers, margins, stops, pychology of trading, etc all you need to know. |
