Only trade volatile stocks

Silk, I think it's more an issue of liquidity for me. I refuse to trade most nasdaq names just b/c you can't move more than 5k shares in a hurry. I know that on the nyse, I can dump 5k at market and let the specialist take his 20c from me. At least I'm out. On the nasdaq, when a stock runs away from you, every mm drops down fast, and the ones that are left are only bidding for 100 shares. You're screwed.

praetorian, well said. that's what the hell i've been trying to tell these guys from the beginning. they just won't listen. :(
 
K, after doing my DD for today, I found theese as potential plays :

AA - bouncin of upper BB, stoch and RSI say SHORT
AMD - stoch, RSI crossing 50 DN, SHORT
BMET - SHORT
CCE - stoch says we're goin down
CMX - breakin S @ 14. If it goes, SHORT
HAL - stoch says down, would wait for vol to pick up
MCD - looks like consol. in an uptrend, stoch worrying me though
SEBL - will probably bounce of middle band
T - would wait to see if S @ 18.50 holds
WM - should pullback a little, then SHORT it

Anyway, I just may be babbling over here so anyone wanna save my A** and some money, please, more than welcome to correct me!

Hope you all had a nice day,
Alex
 
This is a very educational thread, and I am enjoying it. I have a lot of experience not only personally utilizing the different methodologies described so vividly by you in your posts, but also working with successful traders who employ each of the different methodologies.

If it makes any difference to you, I started as a pure NYSE trader. I then added some Nasdaq stocks to my trading. This was (1993) seven years after I placed my first trade. One year later, Nasdaq stocks made about 40% of my trading. In 1995, Nasdaq made about 75% of my trading. This year, it has been about 92% Nasdaq and 8% for both NYSE and options.

The game has changed a lot over the years, but many things remain the same!

1. Risk Management
2. Risk Management
3. Risk Management

And of course, psychology.

I just finished reading Pit Bull (bought the book about 18 months ago and finally had free time to read it). I found it to be entertaining and easy to read and relate to. He talks a lot about having a system that matches your personality and style. But the true hidden treasure, the fifth element, that he had was a partner that was a soul-mate -- who balanced the energy, positive or negative, for him. His worst losing day was when his partner was not there.

So, it is all about YOU and what YOU are comfortable with. There is no MY way is better than YOUR way. In the book he refers to it as the "Who has the biggest #$%%"

The middle ground: A liquid volatile listed stock that trades like the Nasdaq. Hmmm ... I think I know one ... QQQ

Moral: Trade what works for you, but do not, under any circumstance, suffer from tunnel vision. Keep your mind open and learn about other strategies. Why? Because the market changes and your comfort level changes.

Now that I exposed myself to an argument that no one can possibly win, bring it on :)

Magna,

I kept my promise to my wife. One day to go. I am counting the minutes :) :) :)

Trade Smart!
 
Originally posted by neo_hr
K, after doing my DD for today, I found theese as potential plays :

AA - bouncin of upper BB, stoch and RSI say SHORT
AMD - stoch, RSI crossing 50 DN, SHORT
BMET - SHORT
CCE - stoch says we're goin down
CMX - breakin S @ 14. If it goes, SHORT

Alex
More...

My 0.02

AA
50% chance either way - long or short
AMD
Already had two down days. Reward may be limited! Please see http://www.tonyoz.com/usual.htm check out the third chart then think of it if you flip it over.
BMET
Lots of support and resistance between 30-31 Could go either way
CCE
strong move up on big volume. Look for a potential sky scraper setup http://www.tonyoz.com/sky.htm use similar entry and stops
CMX
Can kill you on the short side. Look for reversal day and go long. Use the Bottom fisher methodology http://www.tonyoz.com/bottom.htm . Got to have lots of shorts in this one, so a bounce can be strong. Could go lower but VERY risky.

I can go on, but I just want you to see how I see some of these setups. The thing that was missing is your entry price target and stop for every stock. You must have that!

Check out CRYP for a potential short setup. You have to come up with the plan on your own though.

If you post a complete trading plan for trades on Monday, I will be more than happy to add my 0.02. But has to be a complete plan.

Trade Smart!
 
Tony,

it is all about YOU and what YOU are comfortable with. There is no MY way is better than YOUR way.
Very well put. Even if my way is better than your way... :)

I kept my promise to my wife. One day to go.
Even tho it's killing you, the patient woman deserves nothing less!

I am counting the minutes
I know, I know, soon, very soon.
 
Tony,

THX for the reply. I didnt put entry/stop as I just wanted someone more experienced to say something about the way pick my plays in general.

I will however go into detail tomorrow and post my plays so your thoughts are more than welcome as I seem a little lost.

I mean, I thought I knew what to do and I could say, YES, This is resistance it WILL now reverse but now... it kinda all looks so relative to me, could be either way.

Anyway, see ya soon!

P.S. Is this "THE" Tony Oz? :)
 
K, I was kinda nervous 'cos I thought it really was the King himself grading my decisions :cool:

Anyway, hope I'll see ya on those plays tomorrow when I work them in.

Cheers ,mate!
Alex
 
Originally posted by TonyOz


LOL, no this just a nut-case who pretends to be him :) :) :)
More...

LOL cute Tony.......

I wanted to add my 2 cents to the thread.

The starter said ONLY trade volatile stocks and for some trading styles that is great. Other trading styles like channel following it would kill you. The AMAT, EMLX, NVDA and other volatile guys have very little in intraday support compared to MSFT and CSCO. A trader who is trying to buy near the support and sell near resistance 50 times during the middle of the day would have a lot of trouble finding the intraday support/resistance levels.

A breakout/breakdown trader who be killed though is MSFT/CSCO if they tired to have them breakout every 15 minutes.

Trading volatile stocks is also better when trading a trend following system during a trending market. In a sideways market you'll get whipsawed. Volatile stocks move up a lot but they move down just as fast. It's a double edge sword. To say ONLY trade these is being a trader who doesn't adapt to different conditions.

rtharp
 
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