Stock Trading Basics to Swing Trading

[LiveLife]

Thanks setravis!  Here's link to more SPEX TA charts:

http://www.3stocksonfire.org/trading/index.php?topic=3911.0

[LiveLife]

http://www.spherixinc.com/news.html

[LiveLife]

Wild day for SPEX!  After two days of spectacular gains, profit taking.

As for GZFX, rebound activity wasn't evident, but the loss was small - $0.0004 3.24%

I will wait for more definite rebound activity to buy back.

[ScottishTrader]

I would say watch for a break of the descending triangle, with support at 4.40 - not that this was the level of resistance for the small ascending triangle during the breakout on wednesday too (circled).

if it breaks downward, it will probably go below $4.  Upside potential is easily back up to the 5's.  That iis when we will know if this stock is beginning to become trendable.

[LiveLife]

Thanks Scottish Trader!  This newbie is still learning the art of "chart trending." 

Sorry about the stock buying "template" and class info.  Our son was sick all weekend and the class had to be cancelled.  I think I am beginning to be get what he has  and trying not to be sick also.

I didn't spend anytime this weekend on 3SOF or stock trading.

I will post the info on the "knowledge base" as I get a chance.

As to what I quoted above, my entire family (including me) has been sick all week and I have been slowly working on the new "knowledge base" and "stock trading template."


For those that are not familiar with the start of this swing trading MB thread and the basics to stock trading knowledge base MB thread,  I am a newbie stock trader since July of this year who came to 3SOF losing money stock trading.  With the information I have learned since coming to 3SOF, a community based forum for individual retail stock traders like us, I have gone part-time with my work and stock trade full-time now.

http://www.3stocksonfire.org/trading/index.php?topic=3635.0


Why am I doing this?  I have gotten numerous emails from new and not so new stock traders who have yet to make money stock trading or worse yet, lost money stock trading.  I have been sharing what has worked for me stock trading with traders in person, by phone and emails.  I am still learning each day to be a more effective stock trader, and I have started this swing trading MB thread (1-3 stocks traded within 1-3 days by definition) for these new and not so new stock traders who wants to be more effective stock trading.

I am supporting a new group of people who are brand new to stock trading who do not have enough money to daytrade ($25,000 minimum for Scottrade).  For this group and many who have emailed me with the same stock trading restrictions, I have completely "revised" my approach to this and the knowledge base MB thread.

Swing trading can be an effective stock trading tool for new stock traders and not so new stock traders.  My renewed goal of this and the knowledge base MB thread is to provide the stock trading basics to these groups of "newbies" to stock trading and swing trading to be more effective stock traders and avoid the common mistakes that are often made by stock traders (of all types) that lead to losing money.

I will cover my swing trading template on the next post.

[LiveLife]

Ok, finally, here is the swing trading stock buy/hold/sell template I have devised.  This was created in response to countless requests/emails asking me when they should buy/hold/sell certain stocks.

= Please, use this as a guideline only and always do your own research prior to making stock buy/hold/sell decisions! =

For those that are new to stock trading I am supporting, this has helped them make "practice" buy/hold/sell decisions.  For those of you that are not new to stock trading, this template can be used to "double check" your buy/hold/sell decisions.  - another tools of the trade -  BTW, you are free to copy, paste and distribute this template!  Enjoy!


So, how do you use it?

1)  Since swing trading is done short-term, I use 3 month chart.  You can use 6 month or 1 year chart if you prefer.  I use "free" SharpCharts at StockCharts.com (you can use other website charts, but make sure the indicator settings are the same - RSI (14), Moving Averages 10/50 etc.):  = for some reason, the entire chart link won't post, so copy and paste the url or make sure you change all the indicators to match the sample chart below =

http://stockcharts.com/def/servlet/SC.web?c=GZFX,uu[l,a]daclyyay[db][pb10!b50][vc60][iLb14!La12,26,9]&pref=G

2)  Look at the chart and "circle" the applicable indicators in the buy/hold/sell columns.  If majority of the circles are in the buy column, then indicators favor a "buy"  If majority of the circles are in the hold or sell column, then indicators favor "hold" or "sell" - simple enough?

3)  Practice looking at charts of other stocks and "test" when you should have bought and sold (Yes, swing trading emphasizes "profit taking" on gains!!!  You MUST take profit and buy back on dip more shares or buy some other stock(s) for maximizing your gains!) 

4)  Keep learning from your mistakes and DO NOT repeat them.  Approach each trading day as "brand new."  At any point, if you are uncomfortable about your position, sell and hold cash!  Holding cash is an excellent stock trading option when you are uncertain.

5)  Live Life! (I will resume my "revised" stock trading basics knowledge base as soon as I get a chance).

= Update, I revised the template, I hope this will work better =

= Update = I revised the 10/50 MA row.

[gielda2003]

LL,
It may interest you.
Check it out EEEI. There was a huge news AH.

http://biz.yahoo.com/prnews/051208/nyth143.html?.v=29

Electro Energy Inc. Receives Substantial Purchase Order From EaglePicher Technologies, LLC
Thursday December 8, 4:15 pm ET

DANBURY, Conn., Dec. 8 /PRNewswire-FirstCall/ -- Electro Energy Inc. (Nasdaq: EEEI - News), a leading provider of advanced battery technologies and associated systems, today announced a contract award for the manufacture of nickel sintered plaque for batteries to be produced by EaglePicher Technologies, LLC (EaglePicher). This purchase order is released under the long-term supply agreement between Mobile Energy Products, Inc. (Electro Energy's wholly-owned subsidiary operating in Colorado Springs) and EaglePicher.

ADVERTISEMENT
Martin G. Klein, Electro Energy's Chairman and CEO, said, "We have remained confident that orders under our supply agreement with EaglePicher would rebound. Shipments under this purchase order scheduled for Q1 2006 will exceed prior-year same-quarter revenues generated under the long-term supply agreement with EaglePicher by 337%."

The contract will require EEEI to fabricate the nickel sintered product using its heritage processes and procedures. This product is used exclusively in the highly reliable EaglePicher nickel-hydrogen battery cells. EaglePicher is considered the largest supplier of nickel-hydrogen cells and batteries used in various space applications.

The Colorado Springs facility has been manufacturing nickel sintered plaque for advanced nickel-cadmium and nickel-hydrogen batteries for many years. The operation is capable of making two types, slurry sintered nickel and dry sintered nickel, which are considered the standards for nickel electrode technology in both terrestrial and space applications. Electro Energy's subsidiary, Mobile Energy Products, Inc., has designed and manufactured batteries and cells for over 60 different government and commercial satellites programs.

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. Electro Energy Inc. is developing high power lithium rechargeable batteries utilizing the Company's proprietary design. In May, EEEI announced plans to acquire significant manufacturing assets near Gainesville, Fla., by the end of 2005 to accelerate commercialization of its battery technology.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Electro Energy Inc.'s Securities and Exchange Commission filings available at http://www.sec.gov.

Pursuant to a December 1, 2004 agreement, Consulting For Strategic Growth I, Ltd. ("CFSG") provides Electro Energy with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG receives a fixed monthly fee for the duration of the agreement. Independent of CFSG's receipt of cash compensation from Electro Energy, CFSG may choose to purchase the common stock of Electro Energy and thereafter sell those shares at any time it deems appropriate to do so.

    CONTACTS:
     Audra J. Mace                          Stanley Wunderlich
     Chief Financial Officer                Consulting for Strategic Growth
     Tel: (203) 797-2699                    Tel: (800) 625-2236
     Fax: (203) 797-2697                    Fax: (212) 337-8089
     E-mail: [email protected]     E-mail: [email protected]


Source: Electro Energy Inc.








GLTA,

Gielda

[gielda2003]

I hope to get in in the pre-market. Should be a good one.

Look at After Hours:

http://quotes.nasdaq.com/quote.dll?mode=frameset&kind=&symbol=VPHM&symbol=NVAX&symbol=EEEI&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&selected=EEEI&FormType=&mkttype=AFTER&pathname=&page=afterhours

   
   
     After Hours Trade Reporting   Thursday December 8    
   
After Hours
Last:   $4.30         After Hours
Best Bid:   N/A         After Hours
High:   $5.10
After Hours
Volume:   81,848         After Hours
Best Ask:   N/A         After Hours
Low:   $3.92
      
After Hours
Time (ET)   After Hours
Price   After Hours
Share Volume
18.23   $ 4.30   300
18.21   $ 4.30   100
18.13   $ 4.30   500
18.07   $ 4.30   748
18.07   $ 4.30   1000
17.53   $ 4.30   992
17.39   $ 4.30   292
17.39   $ 4.30   100
17.39   $ 4.30   608
17.30   $ 4.30   100
17.30   $ 4.30   392
17.30   $ 4.30   100
17.30   $ 4.30   500
17.29   $ 4.30   100
17.29   $ 4.30   100
17.29   $ 4.30   200
17.17   $ 4.31   100
17.17   $ 4.31   100
17.08   $ 4.31   492
17.08   $ 4.30   500
17.08   $ 4.30   3600
17.01   $ 4.27   200
17.00   $ 4.27   300
16.56   $ 4.35   100
16.56   $ 4.33   450
16.56   $ 4.48   100
16.56   $ 4.32   200
16.56   $ 4.32   592
16.56   $ 4.32   200
16.56   $ 4.57   100
16.56   $ 4.46   100
16.56   $ 4.46   100
16.51   $ 4.58   700
16.51   $ 4.59   100
16.51   $ 4.45   500
16.49   $ 4.40   4000
16.47   $ 4.40   910
16.47   $ 4.40   200
16.47   $ 4.40   1000
16.47   $ 4.40   300
16.46   $ 4.40   900
16.46   $ 4.40   300
16.46   $ 4.50   100
16.46   $ 4.50   100
16.46   $ 4.50   300
16.45   $ 4.40   400
16.45   $ 4.40   100
16.45   $ 4.40   800
16.45   $ 4.40   200
16.45   $ 4.40   500
Next

GLTA,

Gielda

[LiveLife]

gielda2003, perfect "test" for the template!   


gielda2003, also, I have to maintain the focus of this MB thread for swing traders who cannot daytrade.  I will keep this in mind as I post this point on.  This also means this MB thread will look at stocks that are more appropriate for swing trading, not stocks that can be quickly daytraded for quick gains (which I have been doing in addiiton to swing trading).

As to EEEI, of course time will tell, but I would be more inclined to find another entry point when more "BUY" indicators are present.

[gielda2003]

Hi LL,
I totally agree with the template, cool tool.
In case of EEEI it will go up on the news - check the past news and chart corelation. Also AH trading indicate the raise in the pps.
Thanks for your input.
One more time - cool template 

GLTY,

Gielda

[LiveLife]

Thanks gielda2003!

I hope the template benefits the 3SOF members and visitors in making money instead of losing money stock trading!

Good trading!

Template history/instructions on page 15, 12th post from top

= I just revised the template, hope this will be better =

= Update = I revised the 10/50 MA indicator row.

[LiveLife]

Dang, I thought I was feeling better than the rest of my family, but I am not over the "flu" yet.    and with naps I have been taking, my sleep pattern is all messed up!

Well, if I can't sleep, I will do some posting.

I have started to apply the template to other stocks I have traded recently and currently trading.

NVAX recently gained from $1.50 to $6 and dipped $6 to $3.  Many asked when or if they should buy back NVAX.  When RSI dipped below 50, it finally rebounded.  Below are current template and chart.

If you look at the two vertical red lines, they correspond to the "buy" indicators (red ovals) of the template.  The blue ovals represent the current "hold" indicators.

[LiveLife]

Here's the template applied to GZFX.

[LiveLife]

With recent spiking gains, I do not know if SPEX is trendable still, but I applied the template.

[rurouni]

HI LL,

I APPLAUD AND THANK YOU FOR THE TEMPLATE!!  I know this template will be a good tool for me to use and follow.

Wayne