Momentum stocks journal

Quote from Htrader:

IB allows 2-1 margin with this stock, and since i'm not using this account for anything else, I'm maxing the margin.

And yes the trade has essentially blown up. At this point, I'll need some major follow through to pull me back to even. although I should be able to exit at 0.6 in a couple days at the worst if we dont' see a huge nasdaq collapse.

I don't use any elliot wave, I am purely trading on momentum...which means I buy when stocks are going higher.

I'm still confident that once I work out the kinks in this strategy it should be a huge moneymaker.
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Momentum based long strategies work great in a bull market. Thats about it. In sideways or bear markets u will get crushed up into pieces. Your strategy is not much of anything.. except a one trick pony.

Thus, you will eventually blow out. If you would of been trading your strategey the past year.. you would of made nice $.. but I bet in the future the market will not be as kind.


--MIKE
 
Quote from Trend Fader:

Momentum based long strategies work great in a bull market. Thats about it. In sideways or bear markets u will get crushed up into pieces. Your strategy is not much of anything.. except a one trick pony.

Thus, you will eventually blow out. If you would of been trading your strategey the past year.. you would of made nice $.. but I bet in the future the market will not be as kind.


--MIKE
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Sounds like only so much bitterness Fade-dude. Trend Fading is crap in a relentless bull market like we've had of late. On the otherhand, momentum investing has been doing quite well.

The best of us can swing from both sides of the plate, as the season changes.

So put a cork in it. Gold is collapsing, IBM has doubled it's '04 hiring plan, and Momentum Trading is a well-timed topic ....
 
Quote from Htrader:

Lets try this again.

Bought 40k GOAM @ 0.65
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Sold 20k GOAM @ 0.65



Still holding 20k...perhaps the initial position was a bit too large
 
Quote from Trend Fader:

Momentum based long strategies work great in a bull market. Thats about it. In sideways or bear markets u will get crushed up into pieces. Your strategy is not much of anything.. except a one trick pony.

Thus, you will eventually blow out. If you would of been trading your strategey the past year.. you would of made nice $.. but I bet in the future the market will not be as kind.


--MIKE
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This is not true at all - even in a bear and sideways market there will always be momentum stocks. You just have to know how to find them, and manage your trades better than in a bull market.

The penny stocks are not for me, but you can find nice momo stocks between 10-30 that will always be running, no matter what the overall market environment.
 
I think goam could easily hit at least 0.75 within a week or so, assuming of course that the nasdaq doesn't experience a major correction. A few percentage points decline like today I don't think will have much affect on overall momentum.

In retrospect, my entry on this trade was horrible. I could have easily bought it 10 cents lower and then this would would be a huge winner at this point, rather than merely breaking even.
 
Take a look at VLNC ... I have a good position in this and it has all the earmarks of a multi-bagger for 2004.

Extreme insider buying, +40% revenue growth Q/Q, experienced management team, just moved production facility to China, partnerships w/ Acer & HP to sell their batteries for PC / portable equipment. I don't think this one has been discovered yet by the hot newsletters, but I'm expecting it will sometime this year.

Then again, it could tank like a rock ...:eek:
 
M22AU- Huge day for me there. Cleared about $50k on that breakout (all out now).

Tell me who that short with the 50,000 fakie ecn offers is. He killed my 6-figure trade. I'd love to fly to his office and tell him what's up. But I bet he's having a bad enough day as it is.

Quite a few short funds are calling NFLX waterloo.... sad...
 
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