3SOF

Quote from: David Randolph on July 12, 2005, 06:58:45 PM
Cool project eliteG !

I'll be watching this carefully ... andyman is right in all he says.

Good luck

thx david    excited about your new take on the pennies too

elite it seems that your fast moving in and out of the stock wont help us. Goodluck

not so fast stocky  ... why can't you replicate what I do?  A buy the day before @ close, and sell some time the next day or few days later?

oops, if thats the scheme then its ok. I thought that you are gonna daytrade

Anyway, your other picks have made me more money then I would have made at the superlotto

Good luck with your picks Elite!  Will be following closely.

What I would really like to know is what is that purple guitar playing thing and what does your motto mean.

Thanks

Quote from: boatguy on July 13, 2005, 07:38:59 AM
Good luck with your picks Elite! Will be following closely.

What I would really like to know is what is that purple guitar playing thing and what does your motto mean.

Thanks

Thx can always use lady luck 

Guitar thing is just a colorful picture I found on the internet.  I play g-tar so I just put it in there. lol

The motto is a stock motto: 
Don't eat like a bird(don't take little profits)
And poop like an elephant(and take huge losses or a huge loss)

Quote from: stocky on July 13, 2005, 03:44:24 AM
oops, if thats the scheme then its ok. I thought that you are gonna daytrade

Anyway, your other picks have made me more money then I would have made at the superlotto

awesome man! makes my day 

elite can you plz list your pick atleast 15 min before close, b/c at scottrade I cant trade any stock after hours other then NASDAQ listed ones. [meaning OB and PK are out of it].

That was the reason I missed the FCCN run.

I'll probably just list it right when I do it..this is gonna be fun 

 

Did TWAV and BCON confirm any theories ?
Give an update when you get a minute.

You ready for the next selection ?

yes they are helping clear some things up    IDCO is next on the test block... I posted it in the pennies just a few secs ago...especially with this down market, I think it looks great 

The past 3 have faced alot of resistance.  What have you learned ?

Keep going, the system will work.   

thx fill, I'm looking into it and definately learning a lot.

I've cleared up some research things this week and hopefully after the weekend I'll be ready to start.  I want to get some hard and fast rules down so I can get some feedback from everybody who wants to give it. 

Totally drained from this week.  Everybody have a great relaxing weekend   so we can be millionaires next week...or the week after  

Thoughts:

Allright, I don't know about you guys but ever since the AMRE +1000% trade by David(http://www.3stocksonfire.org/trading/index.php?topic=178.0)  I have been obsessed with the pennies.

I was truly going to give them up but then BLYC(http://www.3stocksonfire.org/trading/index.php?topic=971.0) and
SFTV(http://www.3stocksonfire.org/trading/index.php?topic=973.0) ran some hundreds of %....geez. 

They were never a part of my trading plan before but now they take up a lot of my analysis time and I've decided that shouldn't be the case.  David's .16% calculation (http://www.3stocksonfire.org/trading/index.php?topic=1594.new;boardseen#new) on the chance of a double to occur solidified it for me. 

The thing is with pennies you pretty much risk 50% minimum on every play and the only reward worth that risk is at least a double, in my opinion.  I am a quick momentum trader and I like to daytrade.  I am used to exiting a position after a tiny tiny loss.  The pennies just don't fit in to this philosophy.  Yet the thing I enjoy the most about the markets is technical analysis research(yea sounds fun... I know  ).

How I did the technical research for pennies was pretty simple but took a while.  I found huge % (greater than 100%) penny moves and studied the price and volume action before hand.  All these moves had to occur with a minimum volume of 1 million shares.  I asked myself:  are any of these moves predictable using just T/A?

I went in with the bias that volume would be the key because to me volume is the only safety net in pennies.  Volume bursts in the pennies are tricky things.  I think a trader would zero there account in less than a month playing penny volume bursts.  They can be very fake signals.

I got rid of all the noise on the stock chart.  No moving averages, no indicators(other than volume).  Stocks rising many % are not going to bother with moving averages or indicators.  Just a linear chart showing prices and volume.  And I studied...and I found out some things but they are pretty worthless without a trading method behind them.

So I worked on that and have some things figured out. 

So here is my finding and how I will trade it:

Basically:
A price increase with volume burst which falls back and then breaks out, with volume, of the highest close of the volume burst rise can rise a heck of a lot.

More Technically:
-Filter: on entry day: stocks < 0.50 with volume > 5,000,000
1.  Price increases with many times avg(60ema) volume.(this volume increase must stand out compared to other past volume of stock)
2.  Price falls back for at least 2 days.
3.  Entry is when price crosses the highest close since the volume rise with volume > avg.
4.  still working on exit plans

These plays do not setup often.  But I will be ready when they do.  I estimate 20-40 like these per year.  From now on these are my only penny plays.  Back to stock picking.

Any feedback, suggestions, advice or other research welcome.

Basic idea picture..and I'll follow with some examples.

CYOS