Stock Trading Basics to Swing Trading

[LiveLife]

Many asked about the Rotational Swing Trading trial.  I believe GNBT may be a candidate for a rebounding gain.

If you look at the chart/template below, the technical indicators are improving and moving from the sell column to the buy column.

[LiveLife]

How about GNTA, INSM, and NVAX?

Are their rebounds definite?

[lana2b]

LiveLife

I love your analysis on GZFX situation. Not just the result, but the point of view. Very understandable and usefull. Appreciate so much your input and time. Plus, it made me feel better about GZFX.

Sometimes, when I post my questions(I don't post too much, and it mostly questions) I feel like a user- just asking and don't give any good thing back. I am a young trader, less then a year, and just learning. Hope, in a future I will be able to share my experience too

Thank you again and Good Luck

lana

[LiveLife]

lana2b, thanks for your comments.

I have learned with NVAX last year that we cannot fall in love with companies we stock trade with.  Subjective or "emotional" view of companies will cloud our stock trading judgement and our hope will make us buy high or not sell when we should take profit.

The stock trading templates we have developed on this MB thread will keep us objective and point out when we need to take profit.  Conversely, when everyone is bailing out and selling on panic, it also points out technically corresponding entry/buy points for stocks when they rebound.

When I started stock trading last summer as a newbie, I wondered why some on 3SOF MBs, finance MBs and Institutional/Fund managers would sell when stock was going up and everyone was buying.  Well, when I started out last year, I bought high and sold low.    And I continued to wonder why they bought when stock was going down and everyone was selling.  As NVAX dropped from $6 to $3.50, they bought and sold as NVAX rose to $8 and now they are buying again! (see Lycos I-watch and 1 year TA charts below)  What I learned from 3SOF (Thanks to David/Frederick and many 3SOF members  ) is that they were trading according to technical analysis.  http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=NVAX&range=7&mgp=0&x=11&y=9&i=3&hdate=

This MB thread exists to support newbies to stock trading and those that are looking to be more effective in stock trading.  With my second group of stock trading newbies, I am recommending that they consider doing short-term swing trading with 1-3 stocks to start out with (so far they are doing "paper trades" only).  This will help them learn the basics of technical analysis and develop the buy/sell points of stocks.


lana2b, technical analysis is not 100%, even for trending stocks.  And of course, we'll win most and lose some here and there.   But it does provide an objective guidelines for stock trading buy/sell points, and swing trading minimizes losses on short-term to maximize gains long-term.

The fact is that stocks go from $1 to $4.50 (GNBT) and $8 (NVAX) and $250 (HANS with 2:1 split) on a regular basis.  It is my goal to provide the tools for newbies so that they can effectively stock trade for profit.  On this MB thread, we have accomplished some success already with the swing trading templates and the simple buy/sell charting of technical charts.

These basic tools alone can be used effectively to profit while stock trading (and many have done that and do on a daily basis) and we'll continue to develop more effective stock trading tools as we head into the future.

For those new to stock trading, learn the baiscs of stock trading and technical analysis.  Having the proper foundation will help you become more effective in stock trading and ultimately, MAKE MONEY!    You can check out the ever expanding Knowledge Base here: http://www.3stocksonfire.org/trading/index.php?topic=3633.msg32636#msg32636

Happy Easter everyone!

[LiveLife]

Good morning.

Back in GZFX.   

[LiveLife]

GZFX maintained the gains and closed in the green. 


Interesting repost from Raging Bull MB:

http://www.npr.org/templates/story/story.php?storyId=5331394

"The U.S. Supreme Court has begun to show a greater interest in patent cases. And last week, a Congressional subcommittee held a hearing on whether questionable patents are hurting the economy. Meanwhile, home-movie fans will have a front-row seat as the drama between Netflix and Blockbuster plays out."  More at link.


ericgale1
19 Apr 2006, 07:12 PM EDT Msg. 237939 of 237942

Business models have been copied left and right, throughout US history. They've never been protected, and neither have things like queues.

For example, McDonalds' business model was copied by Burger King, Arbys, Wendy's, etc. They may have certain recipes that are protected, but the general idea of fast food franchises has been replicated many times over.

Furthermore, somewhat akin to Netflix' Que feature, the "drive-through window" was not a patent protected idea. One fast-food place started using it, and then everyone else did.

This suit is an desperate act aimed at preserving proft margins that will shrink as growth slows and competition increases.

It's also having a bad impact on NFLX' image. I've seen several NFLX customers who posted that they are dropping NFLX, because they find this suit so distateful.

[LiveLife]

My repost from 3SOF Penny GZFX MB:
http://www.3stocksonfire.org/trading/index.php?topic=2047.msg58078#msg58078

Calvin87 and godspeed06, thanks for the comments.

Those that are "uncertain" and looking for more positive rebound indicators can wait and buy when more "buy" indicators are present.

I have been trading GZFX since last November and following are my reasons for buying back GZFX:

Since last July, I found that MACD is probably the most accurate indicator to use to make BUY/SELL points.  I use MACD bottoms and peaks to chart my simplified BUY/SELL charts and generally it is right on target (with some small deviations).

If you look at MACD closely, it has bottomed and rebounded today.  The "Negative to Positive" MACD indicator on BUY column represents MACD rebounding and going from negative to positive territory even though it is still in the negative territory.  (Yes, I spent a lot of time looking at charts before I came up with this MACD BUY indicator as I developed the short-term swing trading template).

If you look at the BUY/SELL chart below, you will find that GZFX has been taking profit early as RSI approached 60 and rebounded at RSI 40.  And that's why I decided to buy back.

As always, time will tell.

See you at market open.   

[joet]

Howdie LL
Good to hear that you still like GZFX..  do you have a mental stop limit for this trade in case this is not the bottom?  I am still thinking we may test the .007 support range??
Cheers joe

[LiveLife]

joet,

All I can go by are the past performance data of stocks.

When I monitor my 20-40 group of stocks, I look for past technical trade patterns.  Perhaps I can add the previous RSI buy/sell points to the swing trading templates in the future. 

Typically, stocks rebound with RSI between 30-50.  Some stocks rebound off 50 and some will dip all the way down to 30 before rebounding.  And most stocks will peak with RSI 70-80+ and some will peak early at RSI 60+.  RSI and MACD are just mathematical representations based on past trading behavior/patterns of stocks.

When stocks I monitor rebound and peak, I look closely at the MACD bottoms and peaks.  At present, I am using the simple BUY/SELL chart based on MACD bottoms/peaks to be the primary indicator, which has demonstrated to me to be the most accurate BUY/SELL indicator.

GZFX recently demonstrated that it will rebound off RSI 40 and peak at 60-70.  That's why I believe GZFX has bottomed and with corresponding MACD bottom yesterday and I bought.  Was Tuesday the bottom and yesterday true rebound point?  Time will tell.

[samuelhays]

livelife,

I am a newbie and I have been watching GNBT and I am waiting for the RSI to move to low 40's. MACD seems to be moving towards the positive territory, although not there yet. The company seems to have good things ahead of it with their oral-lyn diabetes drug and bird flu vaccine. I would not be surprised if a large pharm sucked them up.

What are your thoughts?

Samuelhays

[LiveLife]

samuelhays, welcome to the Swing Trading MB dedicated to newbies to stock trading! 

GNBT MACD is continuing to rise towards the positive territory.  My sentiment is that with slight rise in volume today, GNBT may continue the gradual gain pattern from MACD bottom with RSI rising accordingly.  As to large pharma "sucking" Generex up  , the company does hold many promises along with some great patents.  I believe Generex tried a deal with Lily before.  If Generex receives additional approvals for retail sale of Oral-lyn like in Canada, Mexico and European Union, Generex can certainly "license" the products/patents to other larger pharma instead of being merged or bought out.

Generex sure is a promising company, but I am a short-term swing trader and I will continue to trade with stocks that have the greatest of short-term gain potential.  That's why I do "Rotational Swing Trading" by recycling through my list of 20-40 stocks I monitor.  You can check out the ever expanding knowledge base here:
http://www.3stocksonfire.org/trading/index.php?topic=3633.msg32636#msg32636


Repost from 3SOF Penny GZFX MB:
http://www.3stocksonfire.org/trading/index.php?topic=2047.msg58215#msg58215

Calvin87, I am hoping.    godspeed06, yes even a "draw" day is a good confirmation for GZFX that's been on a downward fall.  If this represents an "extended bottom" then GZFX will attract more buyers tomorrow.  Let's watch how GZFX does tomorrow.

And I promised my wife no pumping or hyping GZFX on this trade.  I will focus only on the technicals and sell as RSI hits the previous sell points of 60-70+. 

As to GZFX, another day of confirmation.  More technical indicators are now in the BUY column and today's intraday performance will increase the confidence of this stock.  Many were concerned about the 3 days of fall with 1 day of rise pattern and if this was the case, this pattern is now broken as of today.

[LiveLife]

Here's a retrospect of GZFX.  Will GZFX follow the trendline?

[LiveLife]

Repost from 3SOF Penny GZFX MB:
http://www.3stocksonfire.org/trading/index.php?topic=2047.msg58223#msg58223

godspeed06, some good points.  It's probable that many other traders share your sentiments. 

As to the trendline, the blue trendline was drawn based on recent "bottoms" and does not take into consideration how high the stock "jumped" to.

My take is that if GZFX continues up from this point, then many will see that this is the "absolute" bottoming of GZFX and accept and follow the trendline.  Since many are nervous about previous profit taking cycles of GZFX, I anticipate that RSI may peak earlier than 70-80+ (typical for most stocks).

Believe me, profit taking WILL happen with GZFX on the next run, but as the nationwide rollout commences in the month of May, confidence in GZFX will happen if the share price continues on the trendline.

After the next rise/fall cycle, if the trendline bottom is higher than present levels, then many will consider GZFX to be on the "bullish" run and continue to push the rise/fall cycles higher and higher.  And you can bet that when/if this happens, I will be doing Rotational Swing Trading with GZFX. 

Of course, this is only my "crazy" take only based on technicals yet to be realized.  Add to this any new positive news/PR and it will only improve the share price prospect for GZFX IMHO.

BTW, does anyone realize that this stock is less than a penny?

Could GZFX ever trade in one penny increments?

Time will tell. 

[LiveLife]

Many are wondering about the GameZnFlix support/list on Peter Hankwitz Productions & Management website.  Thanks the_unknown_factor for the link from Investors Hub MB.

Date:4/21/2006 8:18:31 AM
Post #of 155198

http://www.hankwitz.com/

http://www.filmmagic.com/ItemListing.aspx?cgl=178354&str=46126&styp=clbi&navtyp=CAL

[LiveLife]

BTW, Peter Hankwitz is running for congress.
http://www.hankwitzforcongress.com/


With many pipelines GameZnFlix has in the works, I also wonder what all these connections could mean.