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Idea with Potential?
- Thread starter jr07
- Start date
just trade the gaps instead, there is a higher chance of success as its been prooven to work.
take a look at ogxi, cgrb, bbox, atac, rrgb, psys.
sometimes just goin long on a break out gap is very profitable...look at MW http://stockcharts.com/h-sc/ui?s=MW&p=D&b=5&g=0&id=p43796882896 around may 10th. A nice 7pt run up if you have the patience to hold.
take a look at ogxi, cgrb, bbox, atac, rrgb, psys.
sometimes just goin long on a break out gap is very profitable...look at MW http://stockcharts.com/h-sc/ui?s=MW&p=D&b=5&g=0&id=p43796882896 around may 10th. A nice 7pt run up if you have the patience to hold.
Quote from miguel_s:
you fucking idiot. why don't you give me your money and let me do a better job for you.
All the things you said are exactly what a newbie thinks of. nothing wrong with it, just the way a trader progresses. Soon enough you will realize it doesnt work.
Don't waste your time on it. Try to develop an intra day strategy and work on it you fuckin dumb idiotic piece of shit.
God, people on this site are such dumb mother fucking retards.
If you don't want to do the work, give me your money and I will send you a check for 5000 every month.
pay up or fuck off you asswipe.
who are you talking to?
Quote from jr07:
who are you talking to?
absolutely, completely and most unequivocally IGNORE him or any other of the malignant maggots that slither their way into your posts.
think of them as those uber huge earwigs what Khan had inserted into Chekhov's ear to try to control his mind (Star Trek:The Wrath of Khan). in this case, as your mind becomes agitated, their power increases but if you can ignore or find entertainment in them, they shrivel and die.
The problem with this system is that it completely ignores the dynamics of the market and what it is trying to tell you. Usually a stock that creates a large price gap in a direction is telling you something... would seriously advise against buying stocks on weakness in this current environment. I'll leave it at that.
Quote from jr07:
So I had an idea the other night...
what if you entered long positions near the close in the stocks that are down the most with the highest volume on any particular day and did the inverse for ones that are up the most? And close them at the open the next day benefiting from a bounce post oversold/overbought.
I paper traded this idea for a few weeks and noticed some potential. Then I started with small 2k positions on each and after a week I was feeling pretty confident! Particularly on May 6th when my positions in ACAS and DPTR opened 10% gapped up! They were down the previous day 32% and 21% respectively.
Then I got burned with DRYS which was down on May 8th 21% and opened up down ANOTHER 14% the following day without looking back. Similar thing with LEA and UCBH a few days later.
I then noticed that if the general market context is in a certain direction, it doesnt matter whether they were down or up extreme levels, i.e. if the market in general opens gapped down, even stocks that were already down 30%-40% the previuos day can open at lower levels and continue going down.
So I'm not sure now on the idea, although perhaps with a bit of tweaking there may be something.
Anyone tried this in the past? I've been thinking lately if the market in general is up then go with shorting the stocks that were up the most and if the general market is down do the opposite (go long the ones that were down the most)
I used the ones with voume above 10Ms, and stocks below 5$ (most of the ones on the list any day) can't be shorted.
Thoughts?
J
This is what backtesting is called. I guarantee you won't like it's results. Too much dd.