hey Orion,
As far as cutting losers fast, I agree in a stop loss. The stop loss I talk of is if the combined group of 6 results in a loss of $1800, sell it all off and call it a day. Some days have resulted in bigger losses and virtually no days that were down that figure ever recovered.
Setting individual stop losses does not work for this method though. I had toyed with the idea of individual stop losses for each of the 6 stocks AND one for the collective group to cover both sides. The individual stop loss ends up cutting out some very big winners. One recent example is VOL. Look at VOL on Jan. 9th. It went up, was a top 6 at 10am, but then dropped down. If I had any kind of reasonable stop on it, I'd have sold it at a loss. VOL ended up a huge winner and carried the group.
I will have to give some thought to your other point about the volume and price filters. I have noticed that the lower priced stocks tend to be duds and obviously I do not trade the stock if it has less than 100k shares traded by 10am. I would like to research what effect the results would be if I raised the bar to a minimum of 200k shares traded.
As far as cutting losers fast, I agree in a stop loss. The stop loss I talk of is if the combined group of 6 results in a loss of $1800, sell it all off and call it a day. Some days have resulted in bigger losses and virtually no days that were down that figure ever recovered.
Setting individual stop losses does not work for this method though. I had toyed with the idea of individual stop losses for each of the 6 stocks AND one for the collective group to cover both sides. The individual stop loss ends up cutting out some very big winners. One recent example is VOL. Look at VOL on Jan. 9th. It went up, was a top 6 at 10am, but then dropped down. If I had any kind of reasonable stop on it, I'd have sold it at a loss. VOL ended up a huge winner and carried the group.
I will have to give some thought to your other point about the volume and price filters. I have noticed that the lower priced stocks tend to be duds and obviously I do not trade the stock if it has less than 100k shares traded by 10am. I would like to research what effect the results would be if I raised the bar to a minimum of 200k shares traded.