Feb 18, 2009

No trades

The market really blew today. Trading has really been a struggle as of late. Pretty damn annoying.


TraderAm said...

Good call not to trade anything.

Tom T. said...

I noticed lots of candiates but no quality setups, too. Question: when you get easily 50+ candidates how do you weed down - by percent gap, by volume, by recognizeable names or dollar price? I was trying to see if there was a correlation between pre-market volume on a gap and success of gap - did not find it with the limited times I tried. I was figuring if a stock had heavy pre-market trades, maybe that stock will trend better than usual. I no longer use prophet.com so hard to figure out if candidates are trading away from average volume. When there are too many stocks to look at - how do you reduce the stocks to watch?

OONR7 said...

tom t: I used to have the same issue. For me, I just want to make sure I have a steady amount of tradable stocks. Some of the steps I take include paying attention to the closing price of the first :15 bar. Since I'm only trading in the direction of the gap right now, it made sense to me to just look for stocks who's first bar showed either strong weakness or strength. I also only include stocks between $15 and $100 with a trading volume of 200K shares after the first 10 minutes. If my list is still too long... I just look at the top 30 stocks and delete everything else.
It also helps me to set trendline alerts when price approaches a particular level that I'm interested so I don't have to monitor 30 stocks every 5 minutes.