Stock Trading Basics to Swing Trading

[D&Data]

Hi Livelife,
I hope you're fine..
Take a look @ this news...:

About...u know...CBMX;

---->>>>>>>>>>>>"This has a huge market potential ...."<<<<<<<<<<<----------
by: mpetisth1
Long-Term Sentiment: Strong Buy  11/30/05 04:51 am
Msg: 21246 of 21246

"This has a huge market potential in the Asia Pacific region and we look forward to a long and fruitful relationship." ...Mr Steven Fang, Group CEO, CyGenics.

http://www.acnnewswire.net/article.asp?Art_ID=30903&lang=

...What do u think of it ?
It will run....

[LiveLife]

Good morning!  Wow, that was a quick 4 hours 

Hi Doyle, I not sure if that news would be sufficient to push CBMX price up.  You may want to consider NVAX (BTW, David Randolph is buying back NVAX after yesterday's gains) instead of CBMX.  NVAX dropped from $6 to $3 recently and I have been waiting for a rebound since.  I have bought NVAX several times in the past two weeks, only to sell because the "true" rebound activity was not evident.

Yesterday, it  went from $3 to $3.27 (see chart) with volume support.  Also, it appears Institutional/Money Managers continued to accumulate NVAX during the past month as NVAX dropped with little selling (see Lycos I-watch chart),and I may buy back NVAX to swing trade.

http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=NVAX&range=30&mgp=0&x=22&y=12&i=3&hdate=

As to GZFX, yesterday's CEO conference call with wallst.net is great news!  25% subscription increase only since November 1st is very timely positive announcement that a lot of GZFX holders have known and was waiting to hear announced publicly.

Both Berlin and Frankfurt markets sustained GameZnFlix's 12% gain today despite the fact that European markets are mostly down today (see charts) and this may indicate US market performance for GZFX today.  I will be watching both GZFX and NVAX very closely at market open.

Good trading!

[LiveLife]

Nice daytrading NVAX.

I bought GZFX at $0.0157 - $0.0159 for the rebound.

The retracement took much lower than I thought.  Some on other MBs mentioned that money managers may have pushed the price lower to buy shares at a lower price.  Perhaps.

Well, back to the rebound!

[LiveLife]

Why should we "bother" with chart trends and technicals?

Many of you have asked about the RSI (Relative Strength Index) in regards to stock price. 

For this newbie swing trader, my "simplified" definition is:

RSI above 70 - Stock Overbought - Time to Sell
RSI below 30 - Stock Oversold - Time to buy (for my short-term trades, I use 50)

You can find more comprehensive definition and application here:
http://www.stockcharts.com/education/IndicatorAnalysis/indic_RSI.html


I use RSI (14) in conjunction with Moving Averages.  Since I am a short-term trader, I use the 10-50 MA instead of more long-term 50-200 MA.  (Yes, I learned this here at 3SOF, thanks David and Terlisa!  )

David Randolph is a strict technical trader, so he will monitor a stock's 10-50 MA and buy as the 10 MA climbs up towards 50 MA, if supported by volume and sell as 10 MA drops down towards 50 MA (Of course, he uses more in-depth technical analysis techniques/methods, but you will have to get that from David  )

In practice, since I am a short-term swing trader (by definition, making 1-3 stock position trades within 1-3 days), I use RSI approaching above 70-80 as a signal for profit taking, unless extreme buying pressure sustains the price up (I thought perhaps this was the case with GZFX with 400-500 million share volume, but GZFX followed the chart trends and technicals, another lesson learned).  As RSI drops towards 50 (not 30 because I am a short-term trader) I use this as a buy signal.

If you look at the chart below, you can see the RSI patterns with stock price up/down movement.

To see the patterns more closely, I did a one month chart (see StockCharts GZFX 1 mo)

I am basically a swing trader, so I don't mind holding stock shares overnight to benefit from any "gap" up or early market spiking gains (which is often the case with a lot of stocks), but since I can daytrade until noon PST, I will take profit if opportunity is presented, to maximize my gains.

I hope this helped and answered many questions about RSI and stock price.

Good trading!

= Update =
I added another chart with RSI (2) to show more exaggerated swing of RSI.


= Update 10:30 PST =
If you look at the intraday chart, steady climb back up.  We will know in time if retracement is done and we are back on the rebound gain.

[LiveLife]

Repost from GZFX "Penny" 3SOF MB:

tommyt and ehos,

If what tommyt said about wallst.net is true, I have no way of confirming that.  It is tommyt's opinion based on his/her experience and observation about the wallst.net site.

I spent 4 hours yesterday evening listening to the conference call with CEO and wallst.net (over 10 times!!!) and painstakingly transcribed the conf. call for my benefit and other 3SOF members/visitors and for those that I am teaching stock trading in person (yes, swing trading). 

At the request of many (newbies to stock trading and not) I started this MB to chronicle my swing trading, as I continue to learn the "art" and "techniques" of stock trading (trend, position, swing, and even day trading!).  I do not have to maintain this MB nor spend time posting at other MBs (Yahoo, Raging Bull, InvestorsHub, MarketMillionaire and other 3SOF MBs).  But I devote the time and energy to post for those that are trying to learn the often "challenging" aspects of stock trading (in person, by telephone and by emails).  I am like them, another newbie trying to learn why stock goes up and down.  That's all.

I came to 3StocksOnFire in July and became a member.  I came here having lost money stock trading on my own.  I came to learn and as I spent an entire month reading the various posts (of course, they weren't perfect, and they made and lost money - July-Sep is historically the bearish market of the year).  I did not question the posters why they posted what they posted or why their opinions varied, I just read and took in the information I wanted and discarded information I didn't want.

The several months I spent reading, I hardly posted at all.  I was "soaking" in all the information.  I wasn't here for idle chat or "socializing"  I was here to "seriously" learn about stock trading from those that traded effectively.  Thanks to many generous 3SOF members who openly shared stock trading information and "demystified" the difficult concepts of technical analysis (Thanks David! and countless contributing members - you know who you are ) I am now pursuing stock trading full-time and my full-time day job became part-time.

My only objective is to continue to stock trade and learn to be effective.  I am certainly not perfect and I will make mistakes.  And unlike most, I chronicle my trades here with transparency.  I am still in learning mode, learning each day and continuing to "soak" in information.  Heck, I still don't know how to short a stock (shorting GZFX and NVAX would have been nice effective trades! (I don't know if you can short penny stocks).  All I know is that money is made in the market whether it is bullish or bearish.  Money is made on listed blue ships (large cap), mid-cap, small-cap, micro-cap and even penny stocks!  I am in pursuit of learning to effectively trade to make money on all these stocks using as many techniques and methods (even shorting and option trading in the future, I am sure) I am learning right now.

Good trading!

[LiveLife]

Here's a "bigger" retracement chart for GZFX.  Below is intraday chart for Nasdaq.  I am not sure if GZFX is "influenced" by tech/consumer sector, but there may be a correlation.

I will hold GZFX through the night and see what happens tomorrow.  I have learned to rely more and more of my swing trading (by definition, swing traders use technical analysis) on chart trends.  I will wait for retracement to end and rebound gain to resume.

Of course, if it is not, I can always sell and wait for the rebound (like NVAX did after more than 2 weeks!, Dang) and continue swing trading.

Time for lunch and I gotta get ready for work.

Good trading!

[LiveLife]

Just out of curiosity, I checked to see how the GameZnFlix closed at European markets.

What do you think?  (top chart is Berlin and bottom chart is Frankfurt)

[LiveLife]

While eating lunch I noticed the 2.8 million shares at $0.0159!

I wonder who bought it?

The blue color (cyan) is coded by Scottrade as follows:

"Trade data is color coded so that it is easier to see the momentum of the trades.

    * Green color = trade occurred on the Ask,
    * Red color = trade occurred on the Bid,
    * Cyan color = trade didn't occur on the Bid or Ask,
    * Yellow color = trade broke either the High or Low for the day."

= Update =
FYI, I called the Scottrade office and they told me that even if you buy 1 million shares, your buy may be represented by several 100,000 or 200,000 or any combination of blocks.

[LiveLife]

Well, I am off to work!

Nice solid green "Ask" buys!!!

[LiveLife]

Thanks dart1961 for the chart post from InvestorsHub MB:

Date:11/30/2005 8:39:10 PM
Post #of 47719

= Move the scroll bar at bottom to see the right of the chart =

[LiveLife]

Thanks fringe_remnant for post from InvestorsHub MB:

= use the bottom scroll to view the comment on the right column =

Date:11/30/2005 4:05:33 PM
Post #of 47723

Correction: That Was a Beautiful Close

... if you believe that this is a local retracement, and know that it is healthy. If you understand the fundamentals of this play, then you are wringing your hands with glee, especially if you are a buyer.

And if you are a holder, you know the bounce will be great.

I am both today.

[LiveLife]

Good morning!

Today is the first trading day of December!  Looks like many trades were closed out yesterday to finish the month of November (even David Randolph closes out his Fast 3SOF folder at the end of each month and is starting his new trades this morning for December!).

All the European market are in the green (see charts) and both FTSE and DAX are up significantly with momentum building in the latter part of the trading day!

If US market rebounds today, especially with Nasdaq, then good news for tech/consumer sector which has taken a dip the last few days.  If GZFX has been trending with this sector, then it may trend up if the rebound occurs.  As always, time will tell.

As to GameZnFlix, the more people I talk to, the more are expressing their inability to get the movies they want with Netflix and are willing or already have switched to GameZnFlix to give them a try or to benefit from combination movies and game rental.  With 25% increase in the month of November alone, as the word spreads about and people learn of GameZnFlix, the continued increase in subscription will be a "matter of time."

Have a nice trading day everyone!

[LiveLife]

Many have asked about retracement and how low it is supposed to go.

My wife and I looked at many charts all morning and did a "rough" trendline for GZFX.

If the current price is at the trendline with RSI(14) below 50, then we should be rebounding from now.

I also did another chart (see below) with vertical lines right at the bottom of RSI(2) drops that correspond with gains.  I know many have questioned the "technical" trending of stocks, but the chart looks fairly compelling.

(I didn't want to lose detail, so use the scroll on the bottom of chart to see the right of chart)

fousc, what do you think?

= update =
Am I happy to see the rebound!  Well, gotta get ready for work!
BTW, market is closing up!

fousc, I see your chart at "Penny" GZFX board!

[LiveLife]

Good morning!

Here's the world/us market snapshot.  The European markets are once mostly green again today, and both FTSE and DAX are up from yesterday.

If you look at the 5 day Nasdaq chart, yesterday was a nice rebound after several days of drop.  Looking at the 3 mos Nasdaq chart, we are continuing with the historical Nov-Jan bullish market.

[LiveLife]

Now onto the "speculative" GZFX! 

As a comparison, GameZnFlix is up in both Berlin and Frankfurt market (although European and US markets don't always trade the same, most of the time, they do mirror each other).

Looking at the intraday and 5 day GZFX charts, yesterday was a welcome rebound after 3 previous days of profit taking (retracement)!