Sunday, July 8, 2007

Former runners revisited

That phone call from an old friend, your favorite song comes on the radio that you have not heard in a long time, a stock that you know can run big shows up on the high of day list. All kind of the same really, opportunities to once again enjoy something from the past.

Knowing different stocks that have demonstrated big daily price increases in the past is one of the keys to finding opportunities when using the scrolling HOD list method. How do you develop such a list? It comes in time if your an active trader. Running the average day range filter once or twice per week can offer a good starting point for developing a list if your new to day trading. See Muddies post at the right under "Filters I use" It's number 3.

Here is an example of knowing a former runner and how to catch it:

On Thursday, notice TECUA pop up on my HOD list just before the market opened. Having traded the stock in the recent past I knew it had the ability to run big at times and pre market activity for it was rare. Initiated a position in pre after a quick chart / volume check and added to it just after the open when continuation of the run was obvious.

A check of the daily chart shows the big pops the stock had back in May of this year, it was alerted in chat also during that time period.

Knowing former runners and monitoring the hod list for appearances is a simple and effective way to find trading opportunities. See Muddies post for more information here:
Former runners


Anonymous said...

I use Muddy Filter #3 often. As a daytrader we look for a wide range day up on a stock. Works great!

Using that filter today
FRPT,HOKU,CSUN came up on the Stockfetcher scan.

Laura said...

Hiya Loki, good post.

A lot of people don't understand how to watch the HOD list since it scrolls so fast. And it really is next to impossible unless you know a lot of symbols.

As you know, I can't watch much due to work demands right now, but the thing is, I know enough symbols that I can jump into the HOD list at anytime and find good plays.

That is the importance of knowing former runners and having hundreds of symbols stored in your head.

BTW, sweet trade on TECUA!

Inforthemoney said...

Hey, are you intraday trader, long trader or both?

Loki said...

Hi Inforthemoney,

Thanks for the question. At present about 90% of my trades are daytrades. I sleep better at night being in cash.


Anonymous said...

Yes, Daytrading is better than owning a stock longer than a day.

If your holding a stock and it "gaps down" in the morning you got a real problem.

As a daytrader your " in and out" a trade within minutes or hours and still make good money each day.

To be a good daytrader it takes 7 to 8 winners out of 10 trades.