Mags

billpritjr , what are you using for an exit on this? Getting in is the easy part, where to sell, requires an even stronger stomach.
 
Quote from billpritjr:

bought at the breakout at $12, after "new 60 day high" and "at least 3X average volume" scan returned MAGS as a contender

that was March 16

my stockcharts.com scan done at night on March 15, showed that MAGS traded 1 million+ shares that day, with huge price move. Prior ave volume was in the sub 50K range. Made me say "hmmm"

A quick check of IBD group strength showed good group strength, also low shares outstanding, plus a "common sense check" indicated that with the recent news worldwide, the stock would benefit

4000 shares bought at $12.00 on March 16, executed via Buy Stop Market order since I work 9A-5P at my "real job"

have not done anything since that day, just watched my account grow by over $100,000, in about 2 weeks.

Not bad for a trend follower, non-day trader, who places Buy Stop orders in the morning and then goes to work

Long live Livermore, Weinstein, et all [/QUOTE


Really good, Bill,

but as you know, really important is to have a system to regularry find such a rally stock. Do you have one?

I am asking because I have trouble finding this type of breakouts on my software (Prophet, Qcharts) ....
More...
 
Glad to see how "picking it is the easy part"

I let the stock take off (or not, if I dont show a profit immediately I usually close out the trade) then a few days later place a trailing stop at 2X ATR
 
I use stockcharts.com and scan every night the NASDAQ universe.

I am in IPIX also, in at $8, as a result of this scan.

IPIX is now $15+, in one weeks time

good luck

I don't use candlesticks, Elliott Wave, I dont day trade, nothing like that. Trend following, based on price action and volume action. Also I look for small cap NASDAQ stocks that obviously would benefit from the world political climate, all other things being equal. (oil, gold, terrorism, etc)

Also look for "A" or "B" group strength using Investors Business Daily criteria

The ideal trade is a breakout on huge volume, with no obvious news, with a new high into virgin territory, and "A+" group strength.

This ideal trade may only occur once every few months, be advised. The "action" of day trading will have to be put aside waiting for that good trade.

I did and made about $100K (non-margin, real cash) in 2 weeks on MAGS alone.

The "system" told me to trade MAGS, I entered a Buy Stop Market order, turned my computer off, and went to the office. No emotion, no fancy trading software, no hot indicators.

Basic price/volume action, re: Livermore, Weinstein, O'Neill, Darvas

basic trading 101

good luck







 
bill keep us posted ... on your new purchases

but before the runup like crazy ... its 1999 again

in the low float mania bubble ....
 
Quote from lojze:

but as you know, really important is to have a system to regularry find such a rally stock. [/B]
More...

How often do you expect to "regularly find" such bottle rockets?

I'm long MAGS from $5.00 and change. I'll sell it when it breaks the current up trend line. Here's my system:

(1) Find companies making money with at least a decent history of regular dividends, at least 3%/yr.

(2) Keep 8 positions, 10% of portfolio each; 20% cash. Stay in 3-4 different sectors.

(3) Seek exit when dividend falls to less than 1%

(4) Enter new position when cash builds up.
 
I started this simple system with $6,000 in an IRA in Fall of 2000. The account is now over $14,000 (without ever adding anything to the original $6,000).
 
I am not paying the rent with my trading. That helps emotion-wise.

So at no point do I "have to" find "bottle rockets"

I have a scan which I created which searches for breakouts. I am not a fundamentalist but if you call "shares outstanding" and "group strength" a fundamental factor, I do indeed look at those.

I dont "expect" to find anything. I just run scans every night. I typically get 20 to 30 stocks as possibles. It takes about 15 minutes to check their charts, and only 5 typically may have a good chart. Of those 5, I check for shares outstanding, group strength, etc etc. Sometimes LACK OF NEWS coupled with huge volume really raises my eyebrows and I will buy.

I dont get to emotionally involved in "bottle rockets" or "have to find" a trade.

If I find a good looking train that is leaving the station, I get on.

Also remember that one thing makes a stock price go up. The reduction of shares in the "outstanding pool" by buyers. Why they buy? Who the hell knows, and who cares? Past earnings, future earnings, PE's, profits, debt, inventories, etc etc ad nauseum, thats above my head.

I am not a rocket scientist and need a picture drawn in front of me to understand whats happening with a stock. This picture of course is called a chart.





 
Same here Bill. This account with MAGS I have, I view it as a "Crazy Savings Account". Bascially it makes 4-5%/yr on dividends, but a least a couple of times a year one of the stocks shoots up 30% or more. There aren't many losses either, I believe the dividends help keep the price from falling too far.
 
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