DU Stock Trading Method part 2:
I only watch stocks that are trending and trending. Why would anyone watch the ones that are in consolidation?
You are watching stocks that spend most of their time consolidating and then you occasionally see a period that is doing something other than consolidation, which you refer to as trends and swings. You say this occurs about 15% of the time.
I suggest that you consider doing as I do. I maintain a list of stocks that perform as I suggested in my first post and which you quoted.
So now there are two questions on the table: How do you determine turning points? And how does a person maintain a list that is characterized as a list that contains stocks that are always trending between turning points (that is stocks that trend and trend)?
I would be happy to answer the second question first so that everyone has the list in hand all the time and then they can use my answer to the first question to, in a timely manner, always be catching the trends.
I bought GMXR @ 41.13 this am 08NOV06 (See 30 minute chart). This is an example of a turning point and a stock that keeps trend and trend as you put it. Look at NTRI as another simple example. This year I held it four times for and average of 30% per hold. Each hold was about three days. Notice it has dropped off the list below.
I using a turning point signal that I have about one day ahead of time. It makes it easier to enter the next day as the stock begins to make the turn.
Here is a list that is up-to-date. ALJ, ANDE, ANEN, BITS, BTUI, CBEY, CMED, COGO, CTRN, DTLK, DXPE, EZPW, FTEK, GIGM, GMXR, GROW, IAAC, ICE, IIIN, ININ, MGPI, MIKR, NEU, NVEC, OMNI, RACK, SMSI, TIE, TXCO, XING
It is from these rules: QA is EPS>= to 80 or 90, same for RS. Volume min is 200,000 at DU. and float is not over 60MM. Also they make 20% moves at least 5 times in 6 months.
The turning point occurs when a stock has a score go from 1 to 0 to 7. three items determine the score: P, V and A/D. increasing values from close to close give 1’s in binary. A is 1 also. Scores are the base 10 equivalent of the binary numbers. 1 is 001, 0 is 000 and 7 is 111. so going from 000 to 111 constitutes a turn upward. for going short it is 5 to 4 to 3. 101 to 100 to 011. Notice all three binary digits change at either the trough or the peak.
To see the turn a day ahead of time use the 5,2,3, Stochastic fast line going through the 50% line. the score of 000 will become 111 the next day
As you trade daily information just go to a 30 min chart the day you are playing the stock. I did NDE midday on the 30 min chart today as well. this stock is now underway and soon the public will note it and then my position will be “pushed” by the HERD.
This is a lot to learn in one day. Just try to learn a little at a time and you will soon find your way to the kind of trading the Wizard type people do. Right now you have a lot of conventional myths to overcome. They will fall away one after another if you keep with it.
Your answer to the person who asked is not a very good one, mostly because it is incorrect.
