| StockFetcher Forums · General Discussion · POWER SCAN STRATEGY FOR TRADING STOCKS | << >>Post Follow-up |
| TheRumpledOne 6,411 posts msg #37553 - Ignore TheRumpledOne |
8/19/2005 7:30:36 PM Something I found: http://www.esignaluniversity.com/education/marketmaster/strategy/scanner/powerscan.asp POWER SCAN STRATEGY FOR TRADING STOCKS by R. Scales, an eSignal user I set my scan to look for % losers that have a minimum average volume of 200k/day and a daily volume of at least 250k. I have chosen not to look at anything above $3.00 a share, but, depending on the trader, this could be any amount. I wait for the market to open, and I have the Power Scan set to update automatically every 2 minutes. I am looking for a big loser to catch my attention early in the day, usually before 10:15 a.m. ET. (By big loser, I mean greater than a 30 percent loss for that morning.) Once something catches my eye, I look at it on a daily chart. I want to make sure that the chart looks as bad as it can. The steeper the slide, the better. I then look for news. I want to make sure that there is news that has affected the price and that it is not just beaten down because insiders are dumping it. Once I know it's a stock I want to purchase, I follow four steps. Step 1: If all looks bad, but it also looks as though the stock won't be delisted for a while, I pick an entry point and place an order. Almost always, this is in the area of 50 percent loss for the day. So, for example, if a stock closed at $1.00 the prior day, I will place an order to buy 3,000 shares at $.50. My first order is always $1,500. Step 2: As soon as it is filled, I put in 2 more orders, one to buy 7,500 shares at $.40 ($3,000) and the other to sell 3,000 shares at $.60 (20 percent or $300). Step 3: Depending on which one gets filled first, I cancel the other. If the $.40 order gets filled first, I place an order to sell 10,500 at $.50 (a profit of $750) and an order to buy 20,000 shares at $.30 ($6,000). Step 4: If the $.30 order gets filled (which is very rare), I will sell it all at $.40 a share (a $1,700 profit). I have hit the fourth step only one time since I've been using this strategy, and I considered it a rescue mission, so to speak, at the time. Two reasons make it a rescue mission for me: The stock has fallen more than 70 percent in one day, indicating to me that there are many more troubles than what has been released. Probably, most importantly, it is getting beyond my personal risk-tolerance level. I would rather break even or make a small profit than risk $10,500 for a long period of time. Another thing: Whenever I am out, I don't look back and kick myself because a stock's price went to $1.00 or higher. There are too many fish out there and I just wait for them. An example of this would be ATHM. On August 17, 2001, it closed at $.87. It gapped lower on the morning of the 18th, so I put in an order for $.45. It never hit the next level, and I sold it at $.54. I know that this style will not be for everyone, but it is perfect for me. I'm in cash most of the time, and I don't get emotional about a stock that I am holding. Plus, if nothing is moving on a particular day, I am out the door by 10:30 a.m. or so with the rest of the day to myself. In terms of income, I am able to draw approximately $5,000 a month out of my account using the above posted dollar amounts. That might not sound like much to a big city dweller, but I live in a very rural area where the cost of living is pretty low. Also, the account I draw from is $50,000. MAY ALL YOUR FILLS BE COMPLETE |
| TheRumpledOne 6,411 posts msg #37554 - Ignore TheRumpledOne |
8/19/2005 7:35:13 PM http://www.esignaluniversity.com/education/marketmaster/strategy/scanner/premarket.asp PreMarket Scan STRATEGY FOR TRADING STOCKS This strategy uses PreMarket Scan in combination with eSignal (with NASDAQ Level II option). This strategy is, by no means, the only way to use PreMarket Scan, nor is it guaranteed to ensure profits for those who use it. But, for the trader with a moderate amount of experience in the market and an understanding of how the features of the tool work, it can be very effective. (Optional step) As soon as possible after 8:00 a.m. Eastern Time, and before the market opens, observe the percent gainers / losers with a minimum volume of 8k and a minimum average daily volume of 500k. (These are the two qualifiers that figure prominently in the subsequent steps of this strategy.) In this time frame, it is also important to read breaking news stories. In PreMarket Scan, select % Gainers in "Scan Type." Set Minimum Volume to "8k." Set Minimum Average Daily Volume to "500k." Click, "Go." Repeat for % Losers. As soon as the market opens (up to a half-hour after the open), use the "% Gainers" option of PreMarket Scan to make your initial picks. Select as follows: a) All Sectors b) All Issues c) A price range according to the user's habits d) Minimum Volume of 8k e) Minimum Average Daily Volume of 500k Then take the following steps: f) At the bottom of the screen, under "Columns," select, "% Change" and "Volume" as a minimum for purposes of comparison throughout the session. g) Press "Go." h) Select approximately half of them or 10 to 20 issues, starting from the most profitable (the top of the list). i) Copy and paste them into an eSignal Quote window (suggested layout: Basic 1 in the Layout menu). It is important to have the following column choices set up in your Quote window: "Symbol," "Pct (Change from Previous Close)," Pct (Change from Open)," and "Vol." Set up the 2 "Percent Change" columns by right clicking a column heading and selecting "Add Field" and "Change, Percent." Right click Pct column heading and modify "Compute Change." Now use the "% Losers" function of PreMarket Scan to make your next choices. Use the same a) through i) steps as above (except that you are now choosing half or 20 of the least profitable, again from the top of the list). You should now have a range of 20 to 40 stocks in your eSignal Quote window. Become familiar with these stocks, at least by name. At approximately 15 minutes after the market opens, you are ready to do your first eliminations from your list of focus stocks. Sort by left clicking "Vol" column heading. Get rid of low-volume stocks with a daily volume of <75k shares by highlighting these stocks and pressing "Ctrl X" (clears out the information and deletes the rows). (Try to avoid making more than 5 to 7 deletes in any one elimination round.) Do your next two cuts at a half-hour into the day's trading. First, eliminate all stocks that are down more than 10 percent as measured by "Change from Previous Close." (Remember to sort by column heading first.) Now, eliminate stocks down more than 7 percent as measured by "Change from Open." You should now have a list of approximately 15 stocks, a number that can be fairly easily tracked throughout the day. Note: To ensure that symbols no longer being tracked are cleared from the Data Manager, you may have to use "Clear Cache". Go to: File, Preferences; in the window that comes up, select "Clear Cache" choice and hit "Okay". (Optional step). If you have more than 15 stocks, one way to eliminate some would be to select and delete stocks down 5 to 10 percent as measured by "Change from Previous Close" that are also down greater than or equal to 5 percent as measured by "Change from Open" until you reach the desired number. Keep your picks open in eSignal to observe their progress throughout the day. (eSignal's predefined layout Basic 1 in the Layout menu is a great tool for monitoring momentum.) The steps from this point on depend very much on individual traders' own knowledge, ability and risk tolerance. 10:30 Eastern Time is often the first decision point of the day -- time to buy. One option for decision-making might be to do a "Change-from-Open" sort in eSignal and concentrate on the top 5. Read news stories and look at the charts for these 5. Another option might be to copy all 15 of your picks and paste them into the NASDAQ Level II Market Maker Activity Ticker found in the Basic 1 layout and watch the activity there. Look for high bids from institutional market makers, such as GSCO, MSCO, MLCO, SBSH and JPMS. You can also view these market maker moves in eSignal's Market Depth window (an add-on to eSignal). Checking your list of 15 against Power Scan (the market scanner that keeps track of the best trading opportunities from the opening bell to the close) will often show that, of your 15, an average of 6 will be the best stocks to have traded that day as measured by "Change from Open" on Power Scan. In addition, this list will keep pace with the entire market. For example, if the top 3 stocks in your list have a "Change from Open" of 10 to 12 percent, the very best stocks that day will also be up 10 to 12 percent (as measured by "Change from Open"). Again, exercise caution with volatile stocks. Use all the necessary decision support tools. |
| chetron 2,817 posts msg #91999 - Ignore chetron modified |
5/3/2010 6:12:19 PM try this......... |
| miketranz 962 posts msg #92008 - Ignore miketranz |
5/3/2010 8:43:44 PM That's a lot of size my friend.Good way to get hurt if you don't know what you're doing...... |
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