Added Superman(aptly named,this guy has a huge following and puts his stuff right up there for all to see,win or lose, but with him it's very seldom lose!).
Market Kid also and Investorslive.
Saturday, June 14, 2008
Chat Room Guide and Acronyms
Hi all!
Please read our chat room guidelines below. With an average of 130 members in chat daily, failure to adhere to the rules may result in a ban from the chatroom.
Off the top of my head list for the newbies visiting the chat room and blog. Everyone, please feel free to add a comment for any others not on this list!
Please read our chat room guidelines below. With an average of 130 members in chat daily, failure to adhere to the rules may result in a ban from the chatroom.
- If you want to actively chat/participate in the room please take the time to READ the Blog. Most all of your questions are already explained there more than once. Use the search box on the blog as it does work pretty good. Also I have added more links to the Important Posts on the sidebar.
- The room is for alerts of hot momo (momentum, stocks on the move) low priced stocks. Specifically stocks UNDER $20. Large cap stocks such as AAPL, RIMM, GOOG etc. are considered Off Topic in this chat. Low priced stocks are our niche, please respect that. Additionally, options are OT also.
- The moderators are under no obligation to tell you when or if they bought/sold or at what price. We may or may not have bought before the alert. You must decide on your own whether or not to initiate a position. You gotta understand, you are not paying us and we are not offering advice.
- Please don't ask a moderator to analyze your charts/stocks/trades during trading hours.
- From 9:00 am to 4:00 pm ET, limit off topic chat. Most people in the chat work full time. If the alerts are buried in a long OT discussion, it’s very hard to see the real alerts. Extended OT discussions about brokers, pattern day trading, general market conditions etc. can be done through private messaging or discuss it after hours in the chat room. In other words, take it OFF LINE.
- Use all CAPS for stock symbols and give a brief reason for your alert. Same reason as above, makes it easier to see the alerts for people that work.
- Refrain from asking the same questions time and again through the day. The mods and active traders are pretty busy trading, watching, and posting. If the question has already been asked and answered, write down the answer.
- Trade well and have fun!
Off the top of my head list for the newbies visiting the chat room and blog. Everyone, please feel free to add a comment for any others not on this list!
- HOD- high of day
- LOD- low of day
- EOD- end of day
- O/N- overnight
- 52s- new 52 week high
- Green- price is above prior day closing price
- Red- price is below prior day close
- "Green to red" - (vice versa red to green) means stock was above prior day's close, but now has dropped below
- ADR -average day range over a certain period number of days, i.e. ADR(30), the higher the number, the more volatile
- D/R or dayranger- see above
- UBB- Upper Bollinger Band
- LBB -Lower Bollinger Band
- DD- Due diligence, do your homework on the stock, news, earnings, fundamentals etc.
- E/R- Earnings Report
- Pre- Pre-market trades
- AH- After Hours trades
- Low float -usually small cap companies with fewer shares issued and a lot of those shares owned by insiders or institutions. Hence lower number of shares actively traded. That increases volatility and potential for short squeeze or drop/rise on E/R or news.
- R/R- Risk/reward
- 10/60 cross- See post on sidebar under important posts.
- Muddy zone-Search blog for that phrase, on daily chart is area between the EMA 10/SMA 30 (or 20)
- Jiggy- phrase coined by Muddy a couple years ago. Refers to watching the Scottrade quote box. When a stock is gearing up for a possible big move the bid/ask size, bid/ask exchanges, and the prices all start to change very rapidly as orders are increasing tremendously.
Thursday, June 12, 2008
PRE MARKET LEADER DROPS
Besides pre leader "late" hits that I've talked about many times, another and imo an even better risk / reward play, I've talked about on chat is the angle of finding your leaders and following them on watch and looking for ones that turn red.
In order to find my leaders I use at least up 5 % pre and a minimum of 1000 shares traded.
So at the open almost all are up 5%.
Now I want to see red for any short candidates.
But not just red , I want at least a 2-3% confirmation after it goes red ( current price lower than yesterdays close ).
Believe me this giving away 2-3% is a good thing as many under 2% will pull a headfake and return fairly quickly back to even or green.
You don't get many plays,in fact with a list of 20 you may only get a couple a week but imo the risk/reward almost can't be beat.
From my list of 31 today:
CPCI AIRT CMED CLWT CYBX CASY CMZ ABI GERN AW ENS UAUA LYG IBN THC SNG SIRF DGLY NMSS OPXA CYTR TMY DCR ROSG HOTT DSCO FHN NCC ASIA HIMX
only 5 finished the day red and of those only UAUA SIRF and DCR had any vol to speak of.
DCR spread wasn't that tight but I guess was playable.
SIRF was 6.11 close yesterday so with that 2-3% the enter short was around 5.95.
It only reached 6.01 so not a confirm.
If you read my post here I love to trade around even dollar marks . I'd never have shorted it until it fell below the $6 mark anyway .If the confirm mark had been say 6 to 6.05 I'd have waited until at least 5.98/5.99 to go short.
Now UAUA turned out to be the perfect play.
It closed yesterday at 7.22 so red would be 7.21 today.
It ran as high 7.63 today and it didn't look at all like it would go red.
BUT it did hit 7.21 to go red.
The confirm short price was around $7 to 7.05 area BUT as I said I don't enter trades that are that close to an even dollar UNTIL that mark is broken.
So I was looking at around 6.95 area to get short.
Look at the chart and see how UAUA just totally fell apart after falling below $7.
In 2 hours of dumpage it hit a lod of 5.58!
Using the trailer of 3% that I also posted on that post that I use most times,the 3% stop from what then was the current lod of 5.58 my stop was 5.75 if it rose that far.
And it did and I stopped out with a no sweat trade of about $1.20 a share in 2 hours.
Of course they all don't do or even come close to this one but as I said,imo the risk/reward on these few a week is pretty darn good.
In order to find my leaders I use at least up 5 % pre and a minimum of 1000 shares traded.
So at the open almost all are up 5%.
Now I want to see red for any short candidates.
But not just red , I want at least a 2-3% confirmation after it goes red ( current price lower than yesterdays close ).
Believe me this giving away 2-3% is a good thing as many under 2% will pull a headfake and return fairly quickly back to even or green.
You don't get many plays,in fact with a list of 20 you may only get a couple a week but imo the risk/reward almost can't be beat.
From my list of 31 today:
CPCI AIRT CMED CLWT CYBX CASY CMZ ABI GERN AW ENS UAUA LYG IBN THC SNG SIRF DGLY NMSS OPXA CYTR TMY DCR ROSG HOTT DSCO FHN NCC ASIA HIMX
only 5 finished the day red and of those only UAUA SIRF and DCR had any vol to speak of.
DCR spread wasn't that tight but I guess was playable.
SIRF was 6.11 close yesterday so with that 2-3% the enter short was around 5.95.
It only reached 6.01 so not a confirm.
If you read my post here I love to trade around even dollar marks . I'd never have shorted it until it fell below the $6 mark anyway .If the confirm mark had been say 6 to 6.05 I'd have waited until at least 5.98/5.99 to go short.
Now UAUA turned out to be the perfect play.
It closed yesterday at 7.22 so red would be 7.21 today.
It ran as high 7.63 today and it didn't look at all like it would go red.
BUT it did hit 7.21 to go red.
The confirm short price was around $7 to 7.05 area BUT as I said I don't enter trades that are that close to an even dollar UNTIL that mark is broken.
So I was looking at around 6.95 area to get short.
Look at the chart and see how UAUA just totally fell apart after falling below $7.
In 2 hours of dumpage it hit a lod of 5.58!
Using the trailer of 3% that I also posted on that post that I use most times,the 3% stop from what then was the current lod of 5.58 my stop was 5.75 if it rose that far.
And it did and I stopped out with a no sweat trade of about $1.20 a share in 2 hours.
Of course they all don't do or even come close to this one but as I said,imo the risk/reward on these few a week is pretty darn good.
Sunday, June 8, 2008
Tim Sykes Book Review
An American Hedge Fund was an unexpectedly pleasurable read. Boy makes good, the “great American dream”. Refreshing in the telling (and I must say, I agree with other reviewers, it does remind me of Reminiscences of a Stock Operator), it highlights the incredible euphoria and gut wrenching lows of penny stock trading. While not a trading manual, his downfall trade of Cygnus paints a quintessential story of a newer trader’s education and downfall by letting emotions/ego take over and ignore the market facts. The fact is, the market doesn’t care what you think. Get over it.
Tim’s book is also a great read for its take behind the hedge fund curtain and market manipulation. When you finish this book you should know that the odds are stacked against you at all times, particularly as a small investor. Penny stocking is a risky business. Tim’s book is the appetizer. Buy his DVD for the whole enchilada.
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