All Entries Tagged With: "Watch Lists"
Obscurity and Opportunity
June 28, 2011 at 8:57 am
Prolonged market rallies have a way of pulling obscure stocks off the sidelines and getting them involved in the action. It’s the effect of “a rising tide lifts all boats.”
And that’s entirely fine. It’s nice when new names are added to the mix of active stocks.
The market turned higher in March 2009, and since then we’ve seen considerable progress. Tons of little names have entered the fray, paying astute traders along the way (unintentional rhyme).
While I do have some restrictions on what I will and will not trade, I don’t mind trading some of the more obscure names when they’re set up for moves – so long as they exhibit the proper traits:
Size Matters
Dirt-cheap, thin stocks are not worth trading. They carry much greater potential for pain than profit, despite their inexpensive price tags. But growing stocks (price & volume growth, not necessarily earnings growth) are another story. Every big run starts somewhere, right?
There’s often a relationship between ‘unknown’ and ‘underowned’ and that can spell exceptional opportunity. Under-the-radar stocks often times begin to exhibit technical characteristics worth noting, raising interest in them in such a way that they’re the up-and-coming stocks. Naturally, they’re little-known, and that means they’re underowned by institutions (the ones who really move stocks). As they exhibit some staying power, interest in them grows. That brings both price and volume up to tradeable levels, placing them squarely on the watch lists of traders like you and me.
(I’m talking to mostly guys here, so ladies please bear with me on this next analogy. I want these guys to “get it” so they know what I’m talking about.)
Think of that co-ed in college who returned from summer looking far better than the previous semester. What happened? Suddenly she has the attention of many more guys, has more dates, and as competition for her time expands, so does her confidence. Now that she’s being noticed, she’s unlikely to regain the 15 she lost and return to the sweats-with-no-makeup look again. (Nothing against the natural, casual look… just stating that a change is likely to last in this case). She’ll quite likely take care of herself better, and interest in her will be maintained as a result.
Stocks sometimes follow a similar path.
Beware the Flash in the Pan
As the phrase states, “one day does not a trend make.“Â Therefore, it makes sense to make a stock prove itself – at least for a little while – before taking a position.
The single-day spurt higher on news will bring no-name stocks into view on a regular basis, but most of those are just having their 15 minutes of fame. If what you’re seeing is just a knee-jerk response to a headline, there’s limited opportunity and that stock is likely to drift right back into obscurity. Avoid those.
Instead, as a stock begins to earn respect (and attention), watch for the key characteristics that it’s starting to trend: expanding volume, higher highs and higher lows, and a good price/volume relationship. These stocks are much more likely to stick around and offer you multiple opportunities to participate and profit.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Charting App for Android – Finally!
March 11, 2011 at 12:31 pm
I became a smartphone user back in 2004, and for all this time I’ve waited for a charting app that was suitable for me. I’ve long been able to manage positions and place trades from my phone, but what’s been lacking has been a customizable, high-quality, dedicated charting app – until now.
Worden has delivered excellent charting products for decades (I’ve been a Worden user since the 90’s), and now they have a charting app in the Android Market (iPhone app coming soon), TC2000 Mobile.
I downloaded it today, and it instantly exceeded my hopes for what it might do. I had expected to be able to punch in symbols and pull up a chart or customize the look of the chart or timeframe, but was blown away when I realized it has all of MY watchlists from TC already in there – AND all my chart templates!
A few of my favorite features:
- View your personal WatchLists in real-time
- Run your EasyScans with your custom settings on the go
- “Spacebar” through your WatchList charts by swiping right & left
- Read the evening Worden Reports
The newest version of TC2000 is a go-anywhere, access anywhere (desktop, browser, and now mobile app) version that’s getting better every week with added features and regular improvements. It’s just coming out of beta, and I’m thoroughly impressed with what it already offers.
Screenshots of the new TC2000 Mobile charting app:
The TC2000 Mobile charting app is available through Gold or Platinum service levels, so if you’re one of the many thousands of TC2000 users with an Android phone (or soon on the iPhone), this is a must-have trader app!
**Update:Â iPhone app now available in app store.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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How I Maintain Multiple Watch Lists
June 18, 2009 at 7:21 pm
I’ve been known to periodically emphasize the importance of watch list management and maintaining quality watch lists, but it’s time I show you exactly how to go about doing that. This is absolutely essential to staying sharp as a trader, because it avoids one of the primary pitfalls of today’s trader – indecision.
Perhaps you’ve been there before. The market shifts from not doing anything to suddenly gaining momentum, leaving you with zero positions on. Quickly, the fear suddenly strikes you that you’re getting left behind.
Yes, the summertime can be known for that, but it can happen anytime. And it’s quite irritating to get caught feeling flat footed when the market bolts.
My Solution
I kept feeling like I needed a way to manage my favorite setups, but I didn’t quite know the best way to accomplish it. I’ve maintained bullish and bearish watch lists for years, but they were always separated and it was tedious to add and remove stocks to the respective list.
If you’re anything like me, “tedious” diminishes the likelihood of that getting done regularly, because let’s face it – we’re all pressed for time these days.
Well, thanks to the folks at Worden who made this possible, StockFinder’s Flag Column feature provided the perfect solution. I set up multiple flag columns tied to new watch lists, and I’ve been absolutely thrilled at what it’s done for me.
With ease, I can now add and subtract stocks from various watch lists with a quick double-click, which means there’s virtually no time involved, and more importantly, I am staying organized.
When the market moves now, I have a go-to list of names for the appropriate scenario that I can immediately turn my attention to. It’s made a HUGE difference in my decision-making, and it didn’t require that I turn into a super-organized person (that probably wasn’t going to happen!).
Show & Tell
Instead of writing a 2000 word essay on how to do this, I’ve created a quick tutorial to show you how to build a layout exactly like I use. I posted this same clip over on the Trading Videos site and perhaps you’ve seen it there, but in case you didn’t, I wanted to put it here on the blog.
Let me highly suggest viewing the HD version and going full-screen. You’ll want to see the detail.
Oh and if you aren’t already using this software, you can give it a try for 30 days free. I use it every day and can’t imagine trading without it, so I can’t endorse it highly enough.
Here’s the link to download the 30 day trial – I’m guessing you’ll keep it like I did!
Thanks for stopping by and I’ll see you here soon with more. Until then…
Trade Like a Bandit!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
