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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (39828)	11/4/2012 11:01:16 PM
From: Wayners	2 Recommendations Read Replies (2) \| Respond to of 219173

I tend to agree as long as they aren't leveraged. There are caveats. I came up with a formula years ago to calculate the "predictability to risk" ratio for anything. It was based on how often a 3 day moving average turned direction in comparison to the daily volatility, high v. low over the past say 30 days. Today I mostly follow a 5 day moving average and try to find stuff that trades in very nice curves. That's layup money. I remember looking at trading the SPY and QQQ years ago and found that the changes in direction of the 3 DMA were just too frequent and unpredictable. I think the easiest money out there is targeting companies that you know are going to zero from negative cash flows. Under $5, no problem. In the money puts, no borrow necessary if highly shorted like most are. Negative cash flows, previous gap downs, long term downtrend, high volume, no revenues, run by a clown kid wearing a hoodie to important meetings....