Title: Gatlins Stock tips and money advice Source:
[None] URL Source:[None] Published:Feb 5, 2018 Author:Hopefully Gatlin Post Date:2018-02-05 18:32:47 by A K A Stone Keywords:None Views:26057 Comments:167
You wanna get rich? You just might if you follow this advice.
If I had a thousand bucks and I wanted to invest it for a month, what would you buy?
This is going to be difficult to answer. It will take time and some detailed explanation, but I will do this for you. First of all, I cannot answer the question as you posed it because I have never approached trading in that manner. Meaning, As a Swing Trader, I always place a Stop Loss order on each equity I purchase. So, the sell order occurs automatically and I therefore place no time restrictions on any stock buy. I am sometimes in and out of a stock within few minutes and often times I am in and out of a stock the same day, At other times, I am in for as long as a month or two before being being automatically sold out.
I will do this exercise for you in steps but it is important that I begin by presenting the definition of Swing Trading:
DEFINITION of 'Swing Trading'
Swing trading attempts to capture gains in a stock (or any financial instrument) within an overnight hold to several weeks. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders may utilize fundamental or intrinsic value of stocks in addition to analyzing the price trends and patterns.
BREAKING DOWN 'Swing Trading'
The trader must act quickly to find situations in which a stock has the extraordinary potential to move in such a short time frame. Therefore, swing trading is mainly used by at-home and day traders. Large institutions trade in sizes too big to move in and out of stocks quickly. The individual trader is able to exploit such short-term stock movements without having to compete with the major traders.
Swing trading involves holding a position either long or short at least overnight and or up to several weeks. The goal is to capture a larger price move than is possible on an intra-day basis. Swing trading assumes a larger price range and price move and therefore requires careful position sizing to minimize downside risk. Swing trading can involve a mix of fundamental and technical analysis. Swing trades usually rely on larger time frame charts including the 15-minute, 60-minute, daily and weekly charts. Swing trades tend to require more holding time to generate the anticipated price move.
Day Trading Versus Swing Trading
The distinction between swing trading and day trading is the holding position time. Swing trading involves at least an overnight hold, whereas day trading closes out positions before the market close. Day trading positions are segmented to a single day only. Swing trading involves holding for several days to weeks. By holding overnight, the swing trader incurs the unpredictability of overnight risk resulting in gaps up or down against the position. By undertaking the overnight risk, swing trades are usually done with a smaller position size compared to day trading, which utilizes larger position sizes usually involving leverage through day trading margin. Swing trading can utilize the overnight margin of 50% if the account meets the pattern day trading (PDT) rule of maintaining at least $25,000 in account equity. Swing trading on margin can be extra risky in the event a margin call triggers.
A swing trader tends to look for multi-day chart patterns. Some of the more common patterns involve moving average crossovers, cup-and-handle patterns, head and shoulders patterns, flags, and triangles. Key reversal candlesticks, such as hammers for reversal bottoms and shooting stars for reversal price tops, are commonly used in addition to other indicators to devise a solid trading game plan. Stop-losses tend to also be wider when swing trading to match the proportionate profit target.
I will offer no advice....none whatsoever. But since you asked and definitely seem interested, I will do a ONE time walk-though exercise with you. I will tell you what I am now planning. I may modify my plan tomorrow morning depending on the opening price of the stock I choose.
I am out of the market right now. Fortunately for me, all of my stocks sold off automatically on Friday with a stop loss order at one percent. I started to buy back in today but decided not to because the market was so jittery.
BTW, no plan will get you rich in the stock market. But doing the right things consistently over the years can be comforting and enjoyable. There is an old addage many of you may have heard. It goes something like this: The way to make get one million dollars out of the stock market is to start with two million dollars.”
I will begin the first step walking you through it in my next post. This will be fun ...
Again, I understand what you are asking, Stone....but I have no answer for you. You definitely need to check with Pinguinite who declared in a post to me:
I don't think you know as much about trading as I do, Gatlin.
That being the case, I will at anytime graciously yield to his deep breadth of knowledge, his profound wisdom and great expertise as a stock trader.
Since I know of no quick-pick stock to buy when looking for a profit in 30 days. I will therefore explain my Swing Trading procedures for you....for what it’s worth.
When I am starting a new purchase, as I am now, I go to barchart.com and click on ”Stocks” and then on the next page I click on “New Recommendations” to wind up here. I then click on “16 stocks” [or whatever number is currently there] in the “100% Buy Signal” block and arrive here. I work my way down the page to find stocks with %chg” of at least a plus 1 percent. The first stock I find with that is an “old friend” I have lost money on twice before: DECK. But I could care less about before because today is a new ball game going forward.
. I check that DECK is listed on either the NYSE or the AMEX because only those exchanges permit Stop Loss Orders. So, I find DECK is listed on the NYSE. And I see that DECK has a “5-Day Change of +7.38% which fits my minimum of 5% for 5-days. I next check for “Avg Vol” of at least 100,000 shares. I want a large volume trade because with a low volume of say a couple thousand, I could be stuck there for days waiting for a buyer before my automatic Stop Loss Order kicked in. I see the DECK has an “Avg Vol” of 789,310....so I am still a “go” to move on to the next step.
At the drop-down “GO TO” block near the top, I select “Performance Report” and arrive here. It is not unusual to see a “+” for the “Past 5 Days %Chg.” Which when fitted in with all the previous perimeters would give the utmost perfect buy signal. However, here I see a three consecutive day climbs of “+” which is usually my minimum. BUT, when the graph below those numbers has a good steady climb, with no erratic up and down movements, I can go with as few as 2 positive upward movements.
DECK is definitely first on my consider list for tomorrow morning. A cursory glance shows there a a few more stocks I may add, but I will stop here for this exercise. I stay away form the high percentage jumps, like the 12 and 13 percent that caught my eye. With that kind of jump, I am pretty sure to see a drop the next day.
So there you have the first step of what I will be doing throughout the rest of this evening and at different times when I wake up during the night.
See you tomorrow morning when I will make a $10,000 purchase of DECK and be off and running to keep you posted on the progress over the next few minutes or I hope, the next few days. I mostly buy in with $20,000. But I am somewhat cautious considering the jittery movement of the market.
I mentioned that I have purchased DECK before with two losses. I bought back in each time my buy perimeters were met. Here are the results of one of those transactions. You will see the buy date, the number of shares I purchased, the Stop Loss Order price, the actual buy amount price and the actual sell amount price when the Stop Loss Order kicked in. Lastly, the plus and minus readings from right to left show that I bought the stock when it went up two days. Then it dropped down one day but not below 1%....then it went up two days only to drop the next to below my 1% Stop Loss and it automatically sold.
DECK - 01/26 Buy Date - 226 Shares – $88.02 Stop Loss – Buy Amount $19,995.33 – Sell Amount $19,791.34 – Daily Movement [read from right to left] -++-++.
I have been in and out of DECK at least once before this but I usually only keep the last five action days on record. I just happen to have 01/26 because I hadn’t gotten around to deleting it.
Don’t let this all sound too rosy to you. I have had some big gains as well as some huge losses since 1965. I had losses for one period over three straight years. But I had enough reserve capital to continue and enough guts to be persistent. But I do realize that as a trader, but for the grace of God, I could have wound up as big a loser today as I am a winner.
This is probably not what you are looking for Stone. In any case, it is all I have to offer. This is what I do throughout the trading day and for periods at night. You have to have a passion and a love for doing it hours at a time. It is not something to undertake part time. In between trades and while waiting for actions....I enjoy posting on LF.
Remember that this plan is not engraved in granite. Should I find it not working or needing a change....I will do that on a moment’s notice.
I don’t think this is really what you are looking for, Stone. But let me know if you are interested and I will continue with this exercise tomorrow morning. If you are not interested, I will not be offended should you want to save us both time by stopping here.
That being the case, I will at anytime graciously yield to his deep breadth of knowledge, his profound wisdom and great expertise as a stock trader.
I don't do stocks. I do forex. I work with the MT4 platform.
But reading your post it's obvious you do know about stocks, and in fact more about stocks than me. To go 3 straight years with losses and continue through to success is, while obviously not a streak to strive for, does require a professional mindset to survive. If you've done that, my hat's off to you for persevering.
But my comment about knowing more about trading than you do was based on your comparison (if it *was* yours) of bitcoin to the Hunt brother's attempt to corner the market, especially when the mechanism that killed them was a change in the trading rules substantially reducing their leverage which forced them to liquidate their silver positions, when you know, or should have known, that bitcoin obtained it's highs without any leverage being utilized at all, which while not proof bitcoin is quality asset, should nonetheless be respected as a remarkable achievement in the market. That is a very significant difference and seemingly one you missed. And after I point that out you claim the similarity is that both situations ended the party due to interference by authorities. Well, in the case of bitcoin/cryptos, no one government is big enough to do what an exchange did to the Hunt brothers because crytpo trading is decentralized, and that is it's trump card.
In my view, your comparison is a poor one and is why it was apparent to me that I knew more about trading than you.
But okay, since you are a professional trader, you already have a grasp on the importance of setting aside emotion when making trading decisions. So why is it you can accept 3 years of losses and remain optimistic about stocks, but when cryptos have 6 weeks of losses, you say the party is over for them? I would expect any pro trader to admit he cannot predict the market with more than a modest degree of certainty, but you clearly did. I've offered arguments in favor of cryptos based on the changing and growing technology the world is undergoing on ALL fronts and you ignore those arguments completely, simply quoting lots of old school types who don't see it. Apparently you are like them, old school, so what they say is easy for you to accept as authoritative and knowledgeable on the subject, but you, like them, are not even open to the possibility that maybe cryptos do possess some advantages in the market that conventional systems don't have. It's not unlike how pre-WWII, the navy brass refused to believe the battleship could be surpassed in naval supremecy on the high seas, ignoring General Billy Mitchell's warnings about how the airplane was now the superior weapon. He was courtmartialed and forced out of the military but after Pearl Harbor, ended up having an WWII aircraft named after him (and his rank restored).
So I say you cannot be locked into old tech, refusing to acknowledge the new, which is what you are doing. If you have an actual argument against cryptos, then by all means make it. But it seems you've hardly even tried to even field one. It seems instead your opposition to cryptos is emotionally based and you simply get on the same anti-crypto emotion train as all other naysayers, even though you already know emotions are the bane of any trader. So yes, I proceeded to make my observation about how I thought I knew more about trading than you.
... but when cryptos have 6 weeks of losses, you say the party is over for them?
We were good together until here when I stopped to answer your question. I do appreciate your favorable comments on my trading.
To try and answer your question ...
I have been following bitcoin for some time now, ever since it started its run up and began hitting my news alerts. I was intrigued by it. Not with the working mechanism, because I never get involved with that since I am only looking for momentum....but the increase in price. I can say without a doubt, had there been a day trading mechanism for bitcoin [and a couple of companies have tried to start ETFs] that I could have used to swing trade...I would have proudly added couple hundred thousand dollars to my last years tax return filing. I say that after doing mental gymnastics of “what if trading” as I followed bitcoin’s climb.
But as much as I am an optimist, I am also in some ways a pessimist. I saw that bitcoin was moving too rapidly up for no reason I could find but media hype and no support level. I participated in the silver mining stock run up the last two times and made a bunch of money. I used the Stop Loss and was never married to any silver mining stock or fell in love with any one.
How do I tie this to bitcoin?
To answer your question on why I am pessimistic on bitcoin, it was something I cannot scientifically put my finger. Maybe it was a premonition [although I don’t believe in such a thing] because I could definitely see a parallel to the “Silver Thursday” fiasco as 5 countries and then India stepped in to start “government controls.” I could foresee governments stepping in at anytime and upsetting the apple cart. And it was today that I learned the U.S. Senate is getting into the picture.
Sidebar: I believe that government controls are necessary evils in some cases....but in other cases, they are fucking power-hungry idiots in government and go overboard. Uh, does this make me a quasi-libertarian?
I have rambled....something I admit I am good at doing. But to try and summarize with an answer to your question: I just could see no reason for the run up other than hype with everyone jumping on the bandwagon and I fully saw it as a bubble waiting to burst. It may recover, and I sincerely hope for your sake that it does because I get the indication you have a “dog in the fight.” And I am not shorting it, although would have started doing so the second down week if there had been a mechanism for me to do that....so I have no personal reason not to want a recovery for the folks who lost money.
I hope this makes sense and in some way answers your qustion.....while I ask you to forgive the errors because I did this with bad eyesight and just hitting keys.
