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For All Your Investing Needs |
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Welcome to the Speculating Section of Options Realm |
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In the last article that I wrote in the speculation section I mentioned that the trading system that I have been working had hit a rough patch. With the drawbacks that I have experienced I decided to analyze what has been profitable in the past and then look at what could be causing my current system to fail. When looking at the profitable trades that I have made in the past I noticed that a few things has consistently made me money in the past. The following is a list of things that I look for in a stock when I am going to make a short term speculative play. · One of the main things that I look for are stocks that have been beaten down over the past few months. Once the stock has been beaten down I like to see the stock move laterally for a set time. Then I like to see negative news be release and the stock respond by making a positive move instead of a negative downward move. · The next thing that I like to see is a a stock that goes under 20 on the RSI index. This represents buying weakness because the RSI index is the relative strength index with measures a stocks strength. · The last main aspect that I look at when I invest short-term is for the stock to go up over a one to two week period. I often refer to this as the bounce. Now that I have listed the things that I look for on a short-term trading I have decided to redo the way that I was scanning for stocks. Over the next two weeks I am going to continue testing and see if I can find any information that I can use towards designing a model that works. Also over the next few weeks I will be putting out articles describing how I use the above listed techniques to find stocks. Since the newest updates for this project will always be posted on this page I am going to keep links to the old articles here. |
