Stock Trading Basics to Swing Trading

[LiveLife]

Thank you rurouni,

Here are charts and templates for NVAX and GZFX.

Will be holding NVAX and GZFX and sell as RSI approaches 70-80.

[dyc100]

Hey LiveLife, thanks for showing us how the swing trading is done, your templates is awsome!

[LiveLife]

Good morning!

I haven't done much posting due to my family and myself still being sick this past weekend (I spent the entire weekend in bed). 

Those that are new to stock trading, you can use the stock trading template and continue "practicing" with historical (3-6 month) charts and "test" where your buy/sell points should have been.

You can use stockcharts.com or other websites for free TA charts: (for some reason, the entire url won't post, so copy and paste the url into the address bar)

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

Good trading!

[LiveLife]

Good evening!

Nice gain day for GZFX.  $0.0017 (13.49%) gain is great!

An "even break" for NVAX, but $0.02 gain after hour trading.  As RSI approaches 70-80, it should  indicate a "sell" signal.

[LiveLife]

GZFX is once again the "buzz" on MBs.  Is this indicating "buy interest" seen last month?

[LiveLife]

Nice day of gain for NVAX and GZFX.  As NVAX RSI is approaching 70, need to start looking out for profit taking.

[nica33]

Hello Live Life, very interesting your template.  I have a question for you: You mention 2 RSI in the template.  By default My chart program uses RSI(14).  Which is the another? Or is just one is for the value and other is for the trend, but the indicator is the same???

Thanks!!!!!!!

Nica33

[LiveLife]

nica33, thanks for your comments.

Yes, the two RSI indicators are the same (one for value and the other for trend) - I will make the change in the template (see below).

I have found that RSI (14) has been a good "early" indicator of stock price movement, compared to 10 MA, which I have found to be a "late" indicator, although consistent also.  That's why I modified my template twice (I am thinking about modifying the 10 MA comments even more or even using a "narrower range" MA).

Since this MB is gearing up for newbies to stock trading, I am simplifying RSI rule to 30-50 with rebounding or rising RSI (14) as "BUY" and 70-80+ with falling RSI (14) as "SELL" indicators.  It is working for me so far, so I will continue using it. 

As to the stock trading template, my initial "testing" has been going very well with NVAX, GZFX, SPEX and other stocks in "forecasting" short-term stock price movements of less than one week (or I am getting lucky).

Time will tell as to how consistent the template will be.  So far, those new to stock trading has received the template very well in setting their buy/hold/sell points and found it to be relatively easy to use, which was the primary objective of the template - to give newbies some guidelines to follow instead of chasing stock prices up and down.

As I stated in the beginning of this MB, as a newbie swing trader, I will continue to learn and "evolve" to be more and more effective as a swing trader to benefit this 3SOF community of members and visitors and consolidate the learning in the "knowledge base" for others to learn from - "Teaching a trader to fish"

[LiveLife]

Profit taking for NVAX and GZFX.

[nica33]

Hi Live Life, Thanks for the answer.  You wrote that maybe the 10 MA could be a little late.  I've been using MA 5,20 and it works fine for me.  Of course it depends of the time frame that each person uses for the trades.

Bye, 

[LiveLife]

nica33, yes, I am thinking about "tightening" the MA.  I found that MA less than 5 days just becomes a duplicate of current price.

I am looking at HOM (see chart below) to swing trade next.  RSI (14) hit 30 and rebounding.

SPEX (see second chart below) is also rebounding, and may be a good stock to hold brieftly for it to hit RSI of 70-80 again.

[LiveLife]

Bought SPEX this morning for my "brief" swing trading.  I will sell as RSI gets above 70-80.

TIII is also rebounding as well to consider for swing trading.

[OneStockMind]

Man, looking at SPEX chart it really looks like a book example of G-pattern.
I'm afraid to get in now but tempted.

[LiveLife]

OneStockMind,

I was wondering what was driving the rebound of SPEX to spike this morning.  Apparently European Union approved Spherix's tagatose (Naturlose) to be used as an artificial sweetner (like Splenda and Nutrasweet).  When such news affects stock prices, stock no longer becomes trendable.  So for this MB thread, SPEX must be treated as a "speculative" play only for now.

http://finance.yahoo.com/q?s=spex


Now, back to swing trading.  As to HOM and TIII, nice rebounding gains.

I have been looking at redoing the 10/50 MA with 5/20 MA, but I am not sure if it can be used as an effective short-term swing trading indicator.  I am going to take more time looking into it.  Any comments?

[LiveLife]

FYI ... What do you think?  I have seen this at work at Yahoo and Raging Bull MBs.


Thanks elexir16 for the link from Yahoo MB:

12/15/05 08:22 pm
Msg: 103410 of 103445

Bashers' Hidden Agenda.  (8th paragraph down on article)

http://www.advancedsmallbusiness.org/positionpaper.htm

How They Operate

The criminals are short-selling bashers, and illegal stock manipulators, who repeatedly post outrageous known lies or distorted half-truths with a dogged determination and single-minded purpose – use any means possible to drive the stock price down.

In the small and micro cap market, most increases in value to a stock occur when more people buy more shares. Any such occurrence will automatically result in relentless postings that the company is a pump and dump scheme. The bashers will post as many as a dozen posts at a time under multiple aliases in order to dominate a chat board.  On some message boards that give you the option, they continuously post under multiple aliases with a strong sell sentiment, even if they may only post about the weather or some other nonsense post, so that a person visiting that chat board would see an overwhelming majority of the posts and posters with a strong sell sentiment. They disparage the company's products, employees, management, business plans, and anything else about the company so they can create serious doubt about the company in the minds of investors and potential investors. They post their opinions but make them appear to be facts. They make very slanted interpretations of anything the company does as if they were giving an expert analysis, with their conclusions always being the most negative they can be.  When the company issues a positive press release, they state that the press release is all hype, released only to increase the stock price.  If an insider makes a sale or exercises an option, they post false claims that management is dumping the stock because it is getting ready to drop. They ask questions about the company and its products such as: "What studies have they done to prove that their products are safe?" and "What's to say that their products don't cause cancer?" and "Don't you think that the SEC should look into the way this company does business?" All comments made are negative or are cleverly and carefully worded posts intended to damage the company, by either giving people the idea that the company's products are unsafe or cause cancer, that the company's management is incompetent or dishonest, or to make people think that the company is doing something illegal and needs to be investigated by the SEC.

Honest investors, who happen upon the board, will often get buyers remorse from seeing an overwhelming negative sentiment and immediately "panic sell" the stock, which creates additional downward pressure and serves the criminal campaign well. Occasionally, an investor will attempt to say something positive about the company, but the resulting attacks on them will be vicious, thereby hurting their confidence in their investment decision and causing them to promptly abandon the board and usually the stock altogether. They simply do not realize that the bashers are on the board 24 by 7 because that is their job. That is how they earn their living.     ...More on link