i use mostly t/a i learned from the greencats cd . (if you all do not have the cd i suggest you invest in it.) it will be the best investent you will ever make in the market also a few other things i like to do. i have 4 different watch lists i have up each one about 20 stocks. one of them are stocks i have played off and on for years. after a while you can get so you know bottom just by looking at them and i will buy and hold them for the next run. make sure you always have your out when doing this for dilution will kill all that you know and we all know pennies dilute. have your out. when the stock pattern i have been trading on disapears it comes off the list. take a profit and remember they have ran before and always dropped and thier is no reason it will not happen again. this is basically chart reading without reading the chart because the chart will show you exactly what i am saying but it is a few less charts i have to go over when doing my scan.
took me a long time to see something so simple. these company's that do these huge reverse splits a lot of money can be made on them. these company's that do 1 for 1000 1 for 2000 etc are in this to sell shares. ok here is what they do and this happens almost everytime. they reverse split people get pissed sell imidiatly and the drop in price. that is when you buy. for all a sudden the float is next to nothing and that is what these groups love to run and if they dont the company will to run up the price and sell some shares. the way to do it is to buy after the split when it tanks and sit and wait for someone will run it and such a low float they will run it big. i have seen this happen more times then i can count but reverse splits are so bad i never saw the postitve side of them. watch a few and you will see what i mean. paper trade a few before you do the real thing. as always have your out if it drops and make sure you take a profit for you know the company is a pos
here is a place to find r/s
http://www.otcbb.com/dailylist/index_2007.htm
http://www.otcbb.com/otherdailylist/index_2007.htmcatfish style
momo play
this is another fun one i like. you see this stock running out of control on good news or rumors do not buy imidiatly. all stocks have a pull back. use your 15 minute chart and nail it on the pull back. (agian learn to read charts. greencats video is the best thing out thier) these plays i do not go for big gains just a quick 20 to 40% profit then i am out and done with it. reason being that size profit is i do not know if it is a pump or what and not going to chance it. you will never go broke taking a profit.
it may seem to alot of you that i am pumping greencats video. it is something i believe in big time and has made my success in the market posible. if you learn to play the charts you seldom loose and your losses are minor when you do. you use the charts in combination with your own style. gary and i both have our own style but they both work and work well. however all succesful traders have one thing in comon they use and that is good t&a from charts and that is what the cd will teach you
My purpose here is to address the topic of Trading Plans which Catfish started today. It includes Management of trading capital, trading plans and trading systems.
There is a forum already on Chart Technical Analysis so this is not concerned with how to use and interpret charts. Although, in coming up with a trading plan, it may be helpful to know what indicators are the most important for the timing of entries, stops and exits.
Management of capital is most important because if you run out of trading capital you have to quit or start over with fresh cash. There is a saying about trading that the quickest way to $1,000,000 is to start with $2,000,000.
I checked on the Internet and there is a huge number of trading plans/systems for sale from hundreds to thousands of dollars. My problem with buying one of them is how good are they and why is someone offering them for sale if they are making the kinds of profits they claim? Another thing is would I be able to follow someone else's plan or system to the letter? If not, I would be second-guessing and might never know if the plan/system worked or not.
I want do develop and refine my own plan. At least then I'll know how it was done and what all it contains. If I don't follow it, it's my own fault. BTW, I purchased one excellent demonstration of how to find and trade penny as well as higher dollar stocks. It is the only one I have bought: Greencat's CD which is available on SMC. There may be other trading demos/tools out there that are good, too.
Possible points to be addressed in management and trading plans:
1. Types of stops whether mechanical or mental: fixed dollar amount, percentage of trading capital, timed stops, trailing stops whose purpose is to keep losses small.
2. Which is best, placing an actual stop or using a mental one? Pros and cons of fixed vs mental stops.
3. Strategies in placing stops at or near trendlines, moving averages, avoid using whole numbers, high or low of the day and so on....
4. Which orders are best and when to use them: market, limit, stop and other types of orders?
5. How to determine entry, hold and exit points?
6. Reversals, retracements, breakouts, breakdowns....
7. How to determine your risk on each trade?
8. Locking in and taking your profits
9. Ways to reduce your emotional trading.
These are just some of my suggestions of things that could be addressed here.
I think many on Stock Market Cats from the newbies, novices, intermediate and seasoned pros could benefit from sharing a free exchange of information about Trading Plans. I would invite those lurkers to join in too. I found I am absorbing more good information once I started posting.
Thanks for starting this forum Catfish! :D
Quote:
Originally Posted by CATFISH View Post
making money on a reverse split
took me a long time to see something so simple. these company's that do these huge reverse splits a lot of money can be made on them. these company's that do 1 for 1000 1 for 2000 etc are in this to sell shares. ok here is what they do and this happens almost everytime. they reverse split people get pissed sell imidiatly and the drop in price. that is when you buy. for all a sudden the float is next to nothing and that is what these groups love to run and if they dont the company will to run up the price and sell some shares. the way to do it is to buy after the split when it tanks and sit and wait for someone will run it and such a low float they will run it big. i have seen this happen more times then i can count but reverse splits are so bad i never saw the postitve side of them. watch a few and you will see what i mean. paper trade a few before you do the real thing. as always have your out if it drops and make sure you take a profit for you know the company is a pos
thanks for this info!!