NYSE & Nasdaq | Page 15 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

NASDAQ - Price Action & ICT 150 replies

ES S&P 500 futures, NQ NASDAQ 100 futures, RTY Russell 2000 4 replies

DAX & Nasdaq cash open daily profits 1 reply

ECN && STP && Scalping && Hedging - Broker Review - Oct 2009 24 replies

Why trade in USD on NYSE & NASDAQ if USD is going to be worthless soon? 7 replies

Attachments: NYSE & Nasdaq
Exit Attachments

NYSE & Nasdaq

  • #281
  • Aug 31, 2012 8:35am Aug 31, 2012 8:35am
Quoting split_unit
Hi bzx,

I am glad you learnt alot, and welcome to the thread!

Concerning Q1, the type of trading your referring to is known as swing trading. And yes, it is more than possible to trade in that manner. As far as I know, technical analysis plays a larger role than fundamental analysis in this type of trading, fundamental analysis is only used to gauge the overall sentiment on a stock (to identify catalyst and momentum), unlike value investing where it is used to identify mispriced equities that are held for a long time until they rise and return...
Thank you Split for your response!

It will be very helpful if you could also guide us on swing trading with charts. I can somewhat technically analyze any chart but I am not good at using fundamentals (except simple things like debt/eq ratio, price/sales ratio, p/e, comparing EPS).

Q1. For swing trading, what fundamental properties I should look to identify catalyst and momentum? Most importantly, how to interpret them?

Q2. Can I use the same screen filter (finviz.com) that you have explained in the previous post to select the stocks or you could recommend a better screen filter (finviz.com) for swing trading?

Thank you!
-bzx
  • #282
  • Aug 31, 2012 9:37am Aug 31, 2012 9:37am
Quoting bzx
Thank you Split for your response!

It will be very helpful if you could also guide us on swing trading with charts. I can somewhat technically analyze any chart but I am not good at using fundamentals (except simple things like debt/eq ratio, price/sales ratio, p/e, comparing EPS).

[color=#000000][font=Arial]Q1. For swing trading, what fundamental properties I should...
Your welcome,

I use fundamentals to build conviction other traders don't in their analysis. Your right, fundamental analysis is more than just analyzing financial ratio's it requires a deeper understanding of everything. It took me 2 years and a MSc in Finance to fully understand and answer your question.

You want to be a swing trader, first and foremost, you need to understand what swing trading is. Once that is clear, you go onto the drives that move price on swing trading. Swing trading is built on exploiting moves in momentum, you want to buy early and sell early while catching an explosive move thus making it imperative that you are able to identify how those moves occur (technical analysis with breakouts as a possible setup that I cover here on this thread) and the factors that make those moves happen (fundamental analysis). These fundamental factors could be micro or macro economic, could be company specific like earnings, guidance, corporate restructuring, analyst upgrade/downgrade, CEO being fired, auditors resigning, bankruptcy, new products...etc. These are all catalysts.

One of the sources I recommend you start reading for swing trading is Crosshairstrader.

It is a full time job believe it or not, and requires effort. You will be competing versus the sharpest minds on this planet in order to catch a move before them. There isn't one standard method to conduct fundamental analysis on everything cause sectors differ, industries also differ along with companies that are all different from each other. Not all companies with debt are bad, some sectors like real estate have companies with high debt due to the projects undertaken when compared to sectors that are more service oriented with less collateral. Saying that all real estate companies were bad would be a mistake. Context is everything, and knowledge is what makes context clear.

If theres was a book I would strongly recommend to students of stock fundamental analysis, I would choose this book. It was my introduction to stock trading fundamental analysis. Excellent all round book that covers many important topics at once, when your done with this book you should be able to move to deeper books. The book provides an easy workable framework for swing traders, I know some traders who still trade the methods in that book even after years of experience.

Split
  • #283
  • Aug 31, 2012 9:38am Aug 31, 2012 9:38am
Quoting bzx
Thank you Split for your response!

It will be very helpful if you could also guide us on swing trading with charts. I can somewhat technically analyze any chart but I am not good at using fundamentals (except simple things like debt/eq ratio, price/sales ratio, p/e, comparing EPS).

[color=#000000][font=Arial]Q1. For swing trading, what fundamental properties I should...
If your past this level, and the book I recommended, let me know. I will point you towards other resources
  • #284
  • Aug 31, 2012 12:03pm Aug 31, 2012 12:03pm
Quoting split_unit
If your past this level, and the book I recommended, let me know. I will point you towards other resources
Thank you Split!!

I have ordered the book you recommended and I will start reading the blog you recommended. I will come back with more questions, if any.

Thanks again for your help!
-bzx
  • #285
  • Aug 31, 2012 1:35pm Aug 31, 2012 1:35pm
Quoting bzx
Thank you Split!!

I have ordered the book you recommended and I will start reading the blog you recommended. I will come back with more questions, if any.

Thanks again for your help!
-bzx
Your welcome bzx, hope it helps

Split
  • #286
  • Sep 3, 2012 3:31pm Sep 3, 2012 3:31pm
Well, I have 2 books to read now!!

Thanks Split for the info.
  • #287
  • Sep 3, 2012 4:20pm Sep 3, 2012 4:20pm
Hi Split, the XGLD has broken a triangle (I have entered long in FX Gold after the pullback). I know you trade gold across equities, so I think its a good opportunity to ask you for a gold review and learn from your analysis, if you have time for it...

Thanks.
Attached Image (click to enlarge)
Click to Enlarge Name: Gold.png Size: 90 KB
  • #288
  • Sep 3, 2012 9:59pm Sep 3, 2012 9:59pm
Hi Split, I have a question about Stock Selection:

On Post 45 you mentioned you prefer a Beta over 2. Then, on Post 221 you haven't talked about it. I think I know what is Beta about, but I can't figure out why you need to use Beta to filter the volatility, if you already use the ATR for that. (Hope you understand my question)

Thanks.
Greg.
  • #289
  • Sep 4, 2012 4:50am Sep 4, 2012 4:50am
Quoting gregofx
Hi Split, the XGLD has broken a triangle (I have entered long in FX Gold after the pullback). I know you trade gold across equities, so I think its a good opportunity to ask you for a gold review and learn from your analysis, if you have time for it...

Thanks.
I focus on all asset classes and mostly the classes that are moving or about to move. Gold is currently in play and that is why I was active in the XAU/USD thread. I was quite about gold when there was nothing to do, I find gold attractive at the moment at these prices, especially given with the technical's playing out the way they did. When gold does, well gold mining stocks tend to perform strong, a good example would be GG which is on the verge of a breakout along with its industry ETF the gold miners GDX.

Further analysis on gold and its dynamics is better explained by XTRADE. You should follow him if you want to specialize in the shiny metal.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2012-09-04_1345_GG.png Size: 288 KB
Click to Enlarge Name: 2012-09-04_1347_GDX.png Size: 312 KB
  • #290
  • Sep 4, 2012 7:43am Sep 4, 2012 7:43am
Quoting gregofx
Hi Split, I have a question about Stock Selection:

On Post 45 you mentioned you prefer a Beta over 2. Then, on Post 221 you haven't talked about it. I think I know what is Beta about, but I can't figure out why you need to use Beta to filter the volatility, if you already use the ATR for that. (Hope you understand my question)

Thanks.
Greg.
I stopped incorporating Beta into my analysis and that is why I stopped.
I read an article somewhere that low level beta stocks out performed high level beta stocks.

The evidence to this implication on investing (long term as opposed to short term day trading) is the SPLV vs SPHB in the charts below. Low volatility in low beta stocks perform better than the high volatility high beta stocks rendering the CAPM model obsolete in some ways, which made me loose interest in beta a stock selection criteria for trading short term opportunities and to try and avoid high beta stocks when looking at longer term opportunities.

We all grow as traders, and evolve, who ever thought he got too big to fail would share the same fate as the dinosaur I have on my profile picture. There is no one system/method that had worked all the time with guaranteed success that it will work in the future. Markets evolve and so should you, otherwise your doomed for failure. I also stress a lot on reading and educating yourself on different things, and that is why my approach on this thread has been evolving, I want my readers to get curious and ask me question so that I can open their eyes to new information which could make them more profitable.

I have plenty of books to recommend, "How to Make Money in Stocks" is a benchmark to all equity traders. It is also the foundation for what is to come, on different topics. You won't know what you don't know until you know it I am glad you are asking question and interacting. Feel free to shoot away when ever you have any other doubts.

Split
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2012-09-04_1630_sphb.jpg Size: 152 KB
Click to Enlarge Name: 2012-09-04_1630_SPLV.jpg Size: 156 KB
  • #291
  • Sep 4, 2012 10:04am Sep 4, 2012 10:04am
Thanks for taking the time to answer each question!!! How good it is to have found a thread where every post becomes a lesson to learn.

My most sincere thanks!!!


Quoting split_unit
I stopped incorporating Beta into my analysis and that is why I stopped.
I read an article somewhere that low level beta stocks out performed high level beta stocks.

The evidence to this implication on investing (long term as opposed to short term day trading) is the SPLV vs SPHB in the charts below. Low volatility in low beta stocks perform better than the high volatility high beta stocks rendering the CAPM model obsolete in some ways, which made me loose interest in beta a stock selection criteria for trading short term opportunities and to...
  • #292
  • Sep 4, 2012 1:11pm Sep 4, 2012 1:11pm
Quoting gregofx
Thanks for taking the time to answer each question!!! How good it is to have found a thread where every post becomes a lesson to learn.

My most sincere thanks!!!
Your more than welcome my friend, I will help in any way I know how
  • #293
  • Sep 4, 2012 6:49pm Sep 4, 2012 6:49pm
I have to ride this baby!!!

We have an inside bar today, so if price closes over $43 and breaks the triangle, then I will enter long with SL at $41.

What do you think?
Attached Image (click to enlarge)
Click to Enlarge Name: PSX.png Size: 78 KB
  • #294
  • Sep 4, 2012 6:59pm Sep 4, 2012 6:59pm
Hello Split Unit!

I had an idea for your thread, I don't think it is something you follow but will present it anyway.

Idea:

It would be interesting to see some "penny stocks" and their action or bust.
More looking for action upward here with the idea of buying low a bunch of shares, catching a break and either selling or:

Holding, - here we would want to know a bit about the companies books.
ie; debt, age, personnel, etc. whatever you thought important.

Just thought I would throw it out there.

May be fun even if it's not your interest.

Thanks!

XT.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #295
  • Sep 4, 2012 7:01pm Sep 4, 2012 7:01pm
Looks like it has taken the top of the channel as support!

This thing is on fire.

Wondering if she may revisit mid channel before rise? or the current tests with no breach are enough to maintain support at current.

Quoting gregofx
I have to ride this baby!!!

We have an inside bar today, so if price closes over $43 and breaks the triangle, then I will enter long with SL at $41.

What do you think?
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #296
  • Sep 4, 2012 7:20pm Sep 4, 2012 7:20pm
Well, I think that if it breaks down the support line (either the channel's top line or the triangle's bottom line) I will short for a small profit with a tiny SL.

Quoting XTrade
Looks like it has taken the top of the channel as support!

This thing is on fire.

Wondering if she may revisit mid channel before rise? or the current tests with no breach are enough to maintain support at current.
  • #297
  • Sep 4, 2012 11:03pm Sep 4, 2012 11:03pm
Quoting XTrade
Hello Split Unit!

I had an idea for your thread, I don't think it is something you follow but will present it anyway.

Idea:

It would be interesting to see some "penny stocks" and their action or bust.
More looking for action upward here with the idea of buying low a bunch of shares, catching a break and either selling or:

Holding, - here we would want to know a bit about the companies books.
ie; debt, age, personnel, etc. whatever you thought important.

Just thought I would throw it out there.

May be fun even if it's not...
Sure X, I dont mind it at all, alot of people seem interested in the idea and I could experiment with the it by using what I already know to see how it goes, penny stocks have very high R/R just like trading options with more expensive stocks, you either make alot or you loose a little, in other words, your gains are asymmetric. I also don't mind people posting any penny stock trades or ideas here.

I don't think my current stock selection criteria would work on penny stocks for a few reasons:

1- stocks with over 1 million shares are usually big companies that went bust, that is why they are cheap. The don't represent the little illiquid guys who are about to explode.

2-obviously an ATR of 0.5 as previously indicated for the stock selection process is almost impossible for penny stocks, they don't move that much because their moves are small and magnified.

As for the fundies, I would not be looking for value in penny stocks. I would probably be inclined to look at growth in those little companies. I want to see higher quarter/quarter EPS, revenues and sales. As for debt, I wouldn't really exclude companies with debt because small business that are growing rapidly are in always need for funds. I am sure that the quality stocks of tomorrow which are the leveraged penny stocks of today have debt and if they didn't then that would surprise me.

I would also suggest investing the sectors/industries that grow fast like technology and retailers while avoiding stocks that that forever to grow like utilities. Gold penny stocks at a time were ripping the market because of the strength in gold, following the macro-economic trends is also key in identifying penny stocks. You need to know what is hot, or what will become hot based on your analysis and then look for penny stocks in that hot sector.

As for benchmarks, the benchmark I used for the the market is currently the SPY which I based my trades off of. The benchmark for small penny stocks would be the IWM (Russell 2000 ETF) Using the IWM to time you entries in penny stocks should give us an edge.

This is what I could think of, I am sure that by implementing the above, adjustments/modifications will be made.
  • #298
  • Sep 4, 2012 11:19pm Sep 4, 2012 11:19pm
Quoting gregofx
Well, I think that if it breaks down the support line (either the channel's top line or the triangle's bottom line) I will short for a small profit with a tiny SL.
Shorting something this strong is not a wise trade my friend. Never bluntly go against a trend this strong. You might make a profit this time shorting it, but you will eventually get punished for such a move.

If it pulls back, I would suggest you exit the trade and not take a short trade. That is how I play it, not every potential down move is a shorting opportunity.
  • #299
  • Sep 4, 2012 11:28pm Sep 4, 2012 11:28pm
One of my favorite books in the technical analysis is "Technical Analysis Using Multiple Timeframes". This book is for beginner to intermediate level technical analysts, it should give provide you the proper foundation.

I suggest you ignore the stupid reviews on amazon and get this book online, plenty of sites have a pdf of the book which can be found for free. Most of the time, true value is found in books that are undervalued by people on sites like amazon, you should read and absorb all that this book has to offer.
  • #300
  • Sep 5, 2012 10:00am Sep 5, 2012 10:00am
I understand, it is a wise comment. Still waiting for a long swing to enter.

Quoting split_unit
Shorting something this strong is not a wise trade my friend. Never bluntly go against a trend this strong. You might make a profit this time shorting it, but you will eventually get punished for such a move.

If it pulls back, I would suggest you exit the trade and not take a short trade. That is how I play it, not every potential down move is a shorting opportunity.
1 trader viewing now