Easyonlinepaydayloan

Sweet Setups

byronio said: "Right now, I'm finding stocks with: Parabolic buy signal Just crossed over it's 10 day average Good Stochastics (below 20 and rising, %K crossing over %D) Good MACD (Below zero line and rising) ADX above DI lines, with the negative DI above positive DI and moving towards a cross (see examples below) The one variable in this is that the ADX can also be below both DI lines, or it can just be rising up through 20 or 25 with positive DI crossing above negative. When I find the setups I'm not sure what else I can do to narrow the choices down, except looking at their history, see if there are open down gaps behind them that need filling, etc...I can check out the message boards and look into their sectors/industries...but I'm not too sure how important the fundamentals are in trades like these. [B]I'm interested in finding stocks that are going to do something in the day/swing trade time frame.[/B] On Friday I bought 104 shares of CSCO: [url]http://finance.yahoo.com/q/ta?t=3m&...%2Cvm&c=&s=csco[/url] I spotted SGR but had my money in another company, but you can see that the setup was sweet, and considering where they are based and what they do, then Katrina just shot them up: [url]http://finance.yahoo.com/q/ta?s=SGR...,vm,m26-12-9&c=[/url] [B]So, my question is, is there anything else I should be looking at that will help me narrow down the list of stocks I find every day that match all of these criteria?[/B]"

jlipin3 said: "Are you looking for swing setups? Something like Cisco might pull you a 5% profit (if you take it), but it's probably not going to break out. Look for whatever's in the news and try to stay one step ahead. For example... In the wake of Hurricane Katrina, the first sector/industry to explode on the market was energy (specifically, oil). Then it was tanker companies and companies that rent rigs, like THE. Over the next few days, when everyone took their profits, they put them into construction companies like STV. After that, when there were reports that gas stations were literally running out of gas, companies like FUEL, BDCO, and FUELW broke out. Then it was companies that specialized in sanitary cleanup, like LAKE. It's a total hype thing. Yes, technical analysis, looking at insider activity, and finding "cups and handles" are great, but they are less likely to cause someone to bid higher or pay market than some good, pure hype. If you are looking specifically for swing/day setups, study charts for support and resistance. Resistance = the price-range that people tend to sell at and bidders "resist" bidding higher; support = the price-range that bidders tend to pick up the stock after a decline in price, when they think it's a good buy. A lot of stocks will get good pumps off highly-publicized articles on, say, the Motley Fool or Investor's Business Daily. This isn't always true, but it happens a fair amount. I've noticed that many stocks actually tend to decline when they are mentioned by Jim Cramer. Pay attention to the news and learn how economic factors influence changes in the market (price of oil, price of the dollar, natural disasters, disease, FDA approvals). Also, look at price-to-book value, sudden changes in volume, and level II quotes (if you don't feel like paying for level II, use Yahoo's free "real-time ECN" [url]http://finance.yahoo.com/q/ecn?s=INSM[/url] to see what other bidders/sellers are willing to pay and asking for their shares). OH, ALSO, ONE MORE THING. I made this mistake as a rookie. If you are trading on cash, do yourself a favor and NEVER TRADE ON UNSETTLED FUNDS, no matter how well you think a stock is going to do. I don't think this is mentioned enough."

byronio said: "[QUOTE=jlipin3] OH, ALSO, ONE MORE THING. I made this mistake as a rookie. If you are trading on cash, do yourself a favor and NEVER TRADE ON UNSETTLED FUNDS, no matter how well you think a stock is going to do. I don't think this is mentioned enough.[/QUOTE] What does that mean, exactly? I've wondered about that, because so far, when I've sold, the sale goes through instantly (so far) although I think it takes a few days to "really" go through........but as far as I assumed, if they tell you your sale went through at a certain price, then it's as good as done, right?"

jlipin3 said: "[QUOTE=byronio]What does that mean, exactly? I've wondered about that, because so far, when I've sold, the sale goes through instantly (so far) although I think it takes a few days to "really" go through........but as far as I assumed, if they tell you your sale went through at a certain price, then it's as good as done, right?[/QUOTE] For a sale/purchase to clear as settled, it takes 3 business days. However, most brokers allow you to take proceeds from a sale and put them immediately towards the purchase of a new security, providing you don't sell the newly purchased stock UNTIL YOUR SALE CLEARS (3 business days). If you hold onto that stock, you have nothing to worry about. But if you sell it within 3 business days, the SEC could fine your broker, and your broker will often have ramifications as well. I know at Scottrade (my broker), the first violation is a warning, the second is a 90-day ban from trading, and I forget what the third is."

byronio said: "You know, I specifically asked my local Scottrade office about that. And they said you could (with a margin account) buy and sell, and then buy and sell again before the previous sale settles, but that you can only do this 3 times in a 5 day period. So, for example, you could buy and sell on Monday, buy and sell on Tuesday, buy and sell on Wednesday, buy on Thursday, but not sell that one until the following Monday when the previous Monday's transaction settled and dropped off. I know Scottrade got fined for allowing cash accounts to trade before a previous sale settled, but I thought it was different for margin accounts?"

jlipin3 said: "[QUOTE=byronio]You know, I specifically asked my local Scottrade office about that. And they said you could (with a margin account) buy and sell, and then buy and sell again before the previous sale settles, but that you can only do this 3 times in a 5 day period. So, for example, you could buy and sell on Monday, buy and sell on Tuesday, buy and sell on Wednesday, buy on Thursday, but not sell that one until the following Monday when the previous Monday's transaction settled and dropped off. I know Scottrade got fined for allowing cash accounts to trade before a previous sale settled, but I thought it was different for margin accounts?[/QUOTE] Yeah, that's why I said if you're trading on a cash account. Cash accts and margin accts are different."

HappyHarry said: "Those are definitely some good points. Be very careful with margin too. It compounds losses as well as gains."

byronio said: "[QUOTE=jlipin3]Yeah, that's why I said if you're trading on a cash account. Cash accts and margin accts are different.[/QUOTE] Yeah, I understood that. I guess the reason I mentioned that was because the local manager at Scottrade told me differently than what I posted above, which was told to me by her employee. The manager said, basically, that "3 day trades" means "buy, sell, buy, that's three." And I'm like, look, your guy there told me I could do three complete day trades in a 5 day period, and you are telling me that, even with a margin account, I can only "buy, sell, buy" in a 5 day period. So, like I said, I thought it was different for margin, but I can call my local office 3 times and ask the same question and get a different answer each time. So I still don't know what's going on. Whatever."

thezster said: "The answer is relatively simple. If you have a margin account with, for example 4X principle (what I play with).... you can trade unlimited times up to that margin amount in a single day (or even more - twice that for a buy/sell/buy/hold). As your trades and settlements come in day by day, that amount available continues to vary, depending on your dates and trades. If you're buying up to your limit in a single transaction, then selling it, you're allowed to buy again (up to your limit) - but can't sell it till the initial transaction settles... -which takes 3 days to clear - at which time your money should be available again to buy/sell/buy.... This can vary by brokerage house..... which is one reason I don't use Scott-Trade (you get what you pay for)."

byronio said: "[QUOTE=thezster]The answer is relatively simple. .[/QUOTE] Yes, the concept is simple, I just can't grasp why the local broker at Scottrade absolutely and explicitly claims that the above is not true, and has done so repeatedly. He says with a margin account I can do 3 complete trades in any 5 day period, even with my whole limit amount."

thezster said: "Each brokerage house has their own rules and interpretations of the rules. Like I said, you get what you pay for... and Scott-trade is one of the cheapest in the business..... If they are limiting your trades as you explain, it protects them....... while stifling you."