How to find the right trending stocks? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

how to find which pairs are trending {i'm a day trader} 41 replies

Right Wrong Right Wrong Right Wrong 13 replies

Stocks trending room 288 replies

Help to find the right Broker 4 replies

How can I find These Values inorder to find resistance and support levels 2 replies

Attachments: How to find the right trending stocks?
Exit Attachments

How to find the right trending stocks?

  • #1
  • First Post: Dec 17, 2010 8:37am Dec 17, 2010 8:37am
hi folks

recentley i have been having a look at trading stocks and applying what i learnt for forex, i have picked some good trending stocks to follow the trend.

the problem is going through all the stock can take a long time and hard work, when there is 1000+ charts to go through.

is there an easier or should i say quicker way to find out which stocks are trending? and which are not? instead of going through all the charts manually


any help would be appretiated


thanks
sohail
  • #2
  • Dec 17, 2010 10:48am Dec 17, 2010 10:48am
Quoting Sohail786
hi folks

recentley i have been having a look at trading stocks and applying what i learnt for forex, i have picked some good trending stocks to follow the trend.

the problem is going through all the stock can take a long time and hard work, when there is 1000+ charts to go through.

is there an easier or should i say quicker way to find out which stocks are trending? and which are not? instead of going through all the charts manually


any help would be appretiated


thanks
sohail
Stock picking is not a wise way to go
Trade the market, sell it imho....
Don't be a hero. Don't have an ego. Always question yourself
  • #3
  • Dec 17, 2010 5:01pm Dec 17, 2010 5:01pm
Quoting USD-Bear
Stock picking is not a wise way to go
Trade the market, sell it imho....
hi

thanks for the reply

i dont understand what you mean? please can you elaborate


thanks
  • #4
  • Dec 17, 2010 7:29pm Dec 17, 2010 7:29pm
I would assume he is saying trade the S&P or DOW rather than individual stocks.

One way of looking at the stock market is to look at sectors ie: Banks/construction/food/infrastructure etc..you should be able to find info to divide the market up like this.

When you have found this look for the strongest and weakest sectors.
Then if you think the market is going to rise look to possibly buy strong stocks in the strongest sectors.
like wise if you think the market is going to fall look for weak stocks in weak sectors.

This is just a suggestion it is in the end up to you what you trade.
The greatest enemy of a good plan is the dream of a perfect plan.
  • #5
  • Dec 18, 2010 9:22am Dec 18, 2010 9:22am
Quoting steve10%
I would assume he is saying trade the S&P or DOW rather than individual stocks.

One way of looking at the stock market is to look at sectors ie: Banks/construction/food/infrastructure etc..you should be able to find info to divide the market up like this.

When you have found this look for the strongest and weakest sectors.
Then if you think the market is going to rise look to possibly buy strong stocks in the strongest sectors.
like wise if you think the market is going to fall look for weak stocks in weak sectors.

This is just a suggestion...
Exactly, I'm an investor all my live and one thing I've learned is there is not enough time to follow everything in a mans live so trying so You end up with mediocre views ideas and results.

You have to start with an idea/view
For example a few years ago I saw commodities so depressed, mines were closed. On the same time I thought developments in emerging countries (mainly China) would lead to a huge increase of demand. Knowing that re-opening of mines on an average takes some 10 years I predicted shortages of commodities and rising prices. Then I came across an investor called Jim Rogers and saw that he was able to word almost everything I think so studied his ideas and views.
Since then I've been investing in commodities (mainly indexes) and prob will continue for the coming 10 years.
If You can't come up with ideas, try to be a specialist on a sector (the smaller the better) and restrict investing in that sector.
It's far better to know everything from a very small part of the intvesting-environment then trying to learn a little of everything.
Good luck...
Don't be a hero. Don't have an ego. Always question yourself
  • #6
  • Dec 18, 2010 8:01pm Dec 18, 2010 8:01pm
A cool free screener you can use to search which markets are starting to show some heat is FINVIZ sector market screener
Attached Image
  • #7
  • Dec 28, 2010 1:21am Dec 28, 2010 1:21am
Quoting Sohail786
hi folks

recentley i have been having a look at trading stocks and applying what i learnt for forex, i have picked some good trending stocks to follow the trend.

the problem is going through all the stock can take a long time and hard work, when there is 1000+ charts to go through.

is there an easier or should i say quicker way to find out which stocks are trending? and which are not? instead of going through all the charts manually


any help would be appretiated


thanks
sohail
The answer to this is look at which industry is the strongest in the overall market. Then look at the individual stock in that industry. A good way to start is go to http://stockcharts.com/freecharts/perf.html?[MM]
  • #8
  • Dec 28, 2010 11:49am Dec 28, 2010 11:49am
thank you for the info folks, the above chart link is very useful to gauge which industry is doing good or bad



thanks
sohail
  • #9
  • Dec 29, 2010 8:09am Dec 29, 2010 8:09am
A lot of solution were offered already. I would prefer you try a technical scanner, as long as you are not concerned about fundamentals.

www.StockCharts.com offers a very good technical scanner, however, you can't really scan the market according to your own criteria unless you are a member. I believe it would be a good start anyway.

http://stockcharts.com/def/servlet/SC.scan

Best Regards,

Nader
  • #10
  • Dec 30, 2010 12:19am Dec 30, 2010 12:19am
Quoting narafa
A lot of solution were offered already. I would prefer you try a technical scanner, as long as you are not concerned about fundamentals.

www.StockCharts.com offers a very good technical scanner, however, you can't really scan the market according to your own criteria unless you are a member. I believe it would be a good start anyway.

http://stockcharts.com/def/servlet/SC.scan

Best Regards,

Nader
yea, stockcharts do offer very basic charts which is better than nothing. The best scanner i still believe is your own eyeball. Nothing can replace it. One more thing, you can always check out those top volume counters to give you a clue as to which stock to punt.
  • #11
  • Dec 30, 2010 6:40am Dec 30, 2010 6:40am
Quoting ronaldksmmg
yea, stockcharts do offer very basic charts which is better than nothing. The best scanner i still believe is your own eyeball. Nothing can replace it. One more thing, you can always check out those top volume counters to give you a clue as to which stock to punt.
Agreed, but that's why computers and programs are for To minimize the human effort not to replace it...

Best Regards,

Nader
  • #12
  • Dec 30, 2010 4:47pm Dec 30, 2010 4:47pm
Another consideration is your timeframe. If you really want to generate huge returns off of your trades you need to consider a long term approach.

About a year ago ActiveTrader magazine did a revision of the turtle rules to see if they could make them successful in todays markets and the biggest change they made was the entry condition.

The original model was either a 14 0r 20 day high for the first entry signal, and if that was missed it was a 45 or 55 day high. The reason being for the second entry signal was that if a trend was going to be massive, it would almost never be too late to make a good trade on.

The revised ActiveTrader entry was only one signal,a 40 or 45 day high and the reason was that they found was any shorter time frame gave too many false entries (you would be bounced out of the trade by your SL).

There is a trader on ForexFactory named STRAT that has a really well developed system he teaches based on taking your trades in the direction of the monthly bar, and his entries are a lot more refined than simply taking the trade based on one condition and hoping you don't get bounced out by volatility. Its a really well developed approach, especially if you are using leverage.

You can also check out an author named Michael Covel and his web site turtle trader, he has alot of interviews with very, very successful trend traders. You get to see how many big, big players like John w. Henry and Christian Baha actually trade this way.
  • #13
  • Dec 30, 2010 5:41pm Dec 30, 2010 5:41pm
A idea I have been using is to trade the indexes themself, like Homebuilders index instead of Ryland. Yes the swings are smaller (normally) unless reports happen. I stopped trading stocks when Bidu opened up one day down 10-20% I cant remember the exact amount, but I lost almost all gains I had in one day, it sucked.
  • #14
  • Jan 2, 2011 5:19pm Jan 2, 2011 5:19pm
Thanks for that link Narafa. That's exactly the sort of thing I've been looking for. To me personally the RSI oversold/overbought scan seems extremely useful when used in conjunction with plotting support/resistance. Obviously a scanner is no substitute for doing your own work but it certainly has the advantage of helping you find good opportunities while they're ripe.

Ian
  • #15
  • Jan 4, 2011 5:31am Jan 4, 2011 5:31am
Quoting IanMH
Thanks for that link Narafa. That's exactly the sort of thing I've been looking for. To me personally the RSI oversold/overbought scan seems extremely useful when used in conjunction with plotting support/resistance. Obviously a scanner is no substitute for doing your own work but it certainly has the advantage of helping you find good opportunities while they're ripe.

Ian
You are most welcomed and wish you happy and profitable trading.


Regards,

Nader
  • #16
  • Feb 1, 2011 3:07pm Feb 1, 2011 3:07pm
i've made some money in BAC "bank of america" today and IRE "bank of ireland'

bank of america looking good to enter on the swing to exit at approx 16 a share, hit the bottom bollinger band, found support on fibonacci line and just finish consolidating on its way up. it jump almost a dollar today

and on the almost broke bank of ireland, i like it cause no one else does.
at 2 bucks share, minimal risk, i think are mostly at the bottom, its hard to imagine it getting worse for ireland lol
AVT INVENIAM VIAM AVT FACIAM
  • #17
  • Feb 1, 2011 3:28pm Feb 1, 2011 3:28pm
IRE could be a sweet comeback, its formed one heck of a base and has a previous high of around 90 bucks a share.

I don't know a whole lot about fundamentals, but it sure seems to have hit bottom! Thats huge, down to around two from 90! Any technical reasons for getting in, or are is this a value play?
  • #18
  • Feb 2, 2011 8:17am Feb 2, 2011 8:17am
Quoting beachallstar
IRE could be a sweet comeback, its formed one heck of a base and has a previous high of around 90 bucks a share.

I don't know a whole lot about fundamentals, but it sure seems to have hit bottom! Thats huge, down to around two from 90! Any technical reasons for getting in, or are is this a value play?
well technical analysis showing a potential good swing its got a good positive candle stick after a down trend, i dont think it'll explode probably continue to move down but for sure its a good short time swing, however,
im looking more on the risk reward play

you buy 100 shares for 200 dollars, i doubt the EU will let the BANK OF IRELAND go banckrupt, so hold them till they appreciate when this mess is over, idont know where the price might head, i doubt 90 soon but even if it is 10, you make a profit, risking only 200 or 400, i think by this point the risk reward is very attractive
AVT INVENIAM VIAM AVT FACIAM
  • #19
  • Feb 2, 2011 3:17pm Feb 2, 2011 3:17pm
Today I was trying using PEG ratio on small caps with TOP % losers filter.

And I made 3 winning trades. (very short one, with small amount of stocks.)
  • #20
  • Last Post: Feb 4, 2011 1:02pm Feb 4, 2011 1:02pm
ire is in bollinger squeeze, and covering a bullish gap

watch for break out, i in half ways and will add on confirmation
BAC i like it after the double bottom, respected fib retracement and support
and now i think my resume upwards its stalling for the mean time but im up on it. so i just have to move my stop loss

and on LVLT i bought at the bottom, and now seems to be on a cup and handle.
i just added to my position

hopefully god is with me allows me to take profit.

i could always be horribly wrong and loss on all 3, never a routine in trading, you NEVER REALLY KNOW
AVT INVENIAM VIAM AVT FACIAM
0 traders viewing now