Ares

Quote from nkhoi:

What are penny stocks?
There is no set, accepted definition of penny stock...
More...
There may not be in the general trading population but there is at ET where we have a specific policy against threads that post about or list penny stocks. Here's the rules -- any stock can be discussed that meets at least one of the following two criteria:

1. It trades above $5.... or
2. It has at least 1,000,000 shares of average daily volume.

If a stock does not trade above $5 and does not have an average daily volume of at least 1,000,000 shares then for our purposes it's a penny stock and we don't want it discussed at ET. There are plenty of websites that cater to thinly traded and/or cheap stocks and we request that those who want to talk about penny stocks post to one of those sites instead of here. Thanks.

Magna
 
http://elitetrader.com/vb/showthread.php?s=&threadid=20286&perpage=6&highlight=tmtt&pagenumber=4

I took their course and agree with the moderator.

Those things could be learned through the local library - even better - here in Elite Trader (and its links) for a lesser amount - or even FREE.

In fairness to TMTT, I did learn a lot from them.
The software Trade Center and Trade Seeker did make the searching easier when I first started.

The 3 day course and the manuals taught the foundation.
However, buying from the bid and selling at the offer I learned that from somewhere else (Cybertrading University, reading books, searching the internet, etc.).

Inspite of all these training and experiences - the hardest thing I'm still battling with is the EMOTION factor.

Spending a lot of screen time would probably contribute to the learning curve.
 
My observations on BRLC:

BRLC was on my watchlist on July 18, 2007.

I decided to observe it because it was above the weekly 8ma and was active in the pre-market.

It opened at 6.85 and started dropping to 6.67.

I noticed that time and sales slowed down and remember asking another trader that I was chatting with if BRLC had already bottomed out.

Shortly after, the stock climbed.

The following day, I decided to follow up on it.

I received an e-mail on momotrade's trade and gave him a compliment.


http://elitetrader.com/vb/showthread.php?s=&postid=1536954&highlight=brlc#post1536954

What I realized a little later:
This is a clip that I posted on another site (this was posted at 11:30ET):

Re: BRLC


While chatting, this is the info I got.

Pivot = 6.87
10 day Elliot wave count 4?
Price+ Volume-
( is it ready for a pullback or would volume pick up and push the
stock higher?)
MACD crossed the zero line.
Yesterday being a doji,etc.

The person I was chatting with commented that BRLC may be on a 10 day Elliot wave 4 - I looked at it as wave 3 (counting back 10 days).

I plan to re-read the Elliot Wave theory to clarify things out.

I also noticed (later) while chatting, that the daily price and volume had a divergence -a signal for change.

Another ET thread that talks about it:

http://elitetrader.com/vb/showthread.php?s=&threadid=98265&perpage=6&highlight=brlc&pagenumber=2
 
Quote from Ares1:

Few thoughts that were running in my mind today:

Why would daytraders and scalpers choose a more expensive stock (over $10) when it is easier to get in and out with a cheaper stock (providing it has liquidity and range)?

What if traders of different styles combined (daily chart dip buyers, intraday bottom fishers, new buyers coming in, shorts covering,etc.) see what they're looking for in a stock that is below $10 buy at the same time?

Would it be illegal if all the members of Elite Trader or another group (combined funds would most likely be comparable or greater than a particular institution/market maker/ax holding the stock captive) buy one particular stock and force the shorts to cover - creating a short squeeze?
More...

First Question:
Higher priced stocks generally have a greater daily $ range. You can carry less shares for the same risk as a sub $10 stock(again a generalization )

Second Question:
The price will move in the biased direction. More buyers up, more sellers down.

Third question:
Yes is would if that was the intention. Be careful in believing unexplainable moves are manipulation it is usually just something we don't see or understand. If you don't understand it, it is better not to have a position.

AAA30
 
Here's a chart of BRLC:

(I'm still learning how to use stockchart's annotation tool - I've just recently discovered this annotation tool even though I've used stockcharts for a while now - it was just right there waiting for me to use it)

I wish I knew how to extend those trendlines if it were possible. It would also be nice to see the confluence of the downward and upward fibonacci retracements better.

It would be nice to have fibonacci extention tools too for targets. (Currently, I'm just using a simple fibonacci table - a table that I manually entered formulas on.)

I will try to identify the FTT and try to read the gaussians too.

I will aslo try to watch out for MACD and Stochastic signals.

Checklist I have to keep in mind:

Trend
Indicator
Patterns
People (Volume)
Price Action

Trading Day reminders:

Open price signal
Multiple timeframes
Trend
Tradability
Traps
Refreshers
Tape momentum (clock watching/tape reading)

Try to keep emotion in check (even on paper):)

Most likely, I may have missed out other traders' strategies.

Just trying to incorporate as many strategies that I've learned so far.

Looking forward to your comments.
 

Attachments

Thanks for your reply AAA30.

Looking for more replies like this to further my education on my "journey".

Ares

Quote from AAA30:

First Question:
Higher priced stocks generally have a greater daily $ range. You can carry less shares for the same risk as a sub $10 stock(again a generalization )

Second Question:
The price will move in the biased direction. More buyers up, more sellers down.

Third question:
Yes is would if that was the intention. Be careful in believing unexplainable moves are manipulation it is usually just something we don't see or understand. If you don't understand it, it is better not to have a position.

AAA30
More...
 
You must log in or register to reply here.
Back
Top