It would seem like stocks that shoot up fast enough to get a trading halt, might be very interested to trade on a very short timeframe. Does anyone here do this? What is your strategy? Asking for a friend.
Does anyone here go after stocks when they are having volatility halts?
- Thread starter GrowleyMonster
- Start date
Looking for trades with huge volatility is a strategy used by many day traders who are looking for the home runs.
Warrior trading is a perfect example. They look mainly for very large relative volume. Almost exclusively to the upside if i am not mistaken.
They are not looking for stocks that are halted but the stocks they are looking at are among the ones getting halted, like KODK at the end of July for example.
Very risky strategy but can be very rewarding.
Warriortrading only goes for the more obvious tickers with high relative vol price between $2-$10. Something like KODK or WINS will most likely run off his radar. KODK made a move that nobody was expecting except the ones manipulating the price action. A ton of bears got trapped short on it.
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This site may be useful to you. Lists all trading halts for the day and the reason.
https://www.nasdaqtrader.com/trader.aspx?id=TradeHalts
https://www.nasdaqtrader.com/trader.aspx?id=TradeHalts
2 of my different short systems picked it at different points. One on a day when it peaked (there was not way of knowing of course), second one after it started falling too fast with gaps.
Both systems are designed using 70 years of data for whole US stock market including delisted companies. No way to know what a next KODK will be, but it is likely not the first one and odds of making money at some points were overwhelming.
Unfortunately I couldn't borrow on a first entry which would have made ~50% in couple of days. But I did on a second one, for ~30% gain. At that point people were too scared to short it as it fallen too much from the top so there were plenty of shares to borrow.
Guys who got destroyed went in too early. Low priced stocks had 10x runs over few days on multiple occasions in the past. There is nothing new there.
Val