The Daytrading & Swingtrading Thread

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deaddog
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Re: The Daytrading & Swingtrading Thread

Post by deaddog »

adrian2 wrote:BMO has traded yesterday between $61.62 and $62.35, so I'm guessing you haven't bought yet?
Nope I haven’t bought it yet.

Using your tuna analogy;

I would prefer to think from the point of view of the store owner. Why is Tuna marked down 30%. There could be several reasons.
To get people into the store, you sell at a loss to make profit else where.
There is a more profitable product so you get rid of most your tuna so you can have more shelf space.
To retain customers you have to sell your tuna at that price because of competition.
Tuna is not selling at the posted price because the publics’ appetite for tuna has declined.
The store bought at a huge discount and is passing the savings to its customers.
Whatever the reason the store owner isn’t making the profit he made in the past.
In most the cases he is taking a loss or getting out at break even. As a store owner you want to turn your stock over, you rarely consider buy and hold.

So for the retail customer it makes sense to stock up at the sale price. For the retailer it is a different story. He knows that all the tuna lovers have stocked up on tuna. When he takes it off the sale price, what customers will be left to buy his remaining stock? Also now that it has gone on sale, the customers are likely to wait for another sale before they buy again.

The only way the customer will be tempted to buy is if the price of tuna starts to go up. If the retailer starts pricing tuna at 3.59, then 3.69 and increases it each week, if the demand is there, the consumer soon thinks that he had better stock up now before it gets to $4.99.
If there is no demand the price will stay the same or come back down.

So I watch the price and if it starts to go up with demand I will buy some, if not I’ll see what the consumer thinks is trendy today, and try and take advantage of that trend.

It didn't look like there was much demand for BMO @ 62.35. One of the retailers started marking the price down.
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Re: The Daytrading & Swingtrading Thread

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DenisD wrote: Good thing too. If he can't go online for a few trading days, he'd be holding BMO without a stop loss order. :shock: :wink:
Bracket orders :wink:
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:Using your tuna analogy;

I would prefer to think from the point of view of the store owner. Why is Tuna marked down 30%. There could be several reasons.
To get people into the store, you sell at a loss to make profit else where.
There is a more profitable product so you get rid of most your tuna so you can have more shelf space.
To retain customers you have to sell your tuna at that price because of competition.
Tuna is not selling at the posted price because the publics’ appetite for tuna has declined.
The store bought at a huge discount and is passing the savings to its customers.
Whatever the reason the store owner isn’t making the profit he made in the past.
In most the cases he is taking a loss or getting out at break even. As a store owner you want to turn your stock over, you rarely consider buy and hold.

So for the retail customer it makes sense to stock up at the sale price. For the retailer it is a different story.
Why would you compare yourself to the store owner and not to the retail customer? The former would make sense if you are the market maker in certain securities, which I don't think it's the case.
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Re: The Daytrading & Swingtrading Thread

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No I’m not a market maker.

A stock market is exactly that. It manufactures and sells stocks to the public, not unlike any other market.

Unlike an investor who buys a stock for the dividends, I don’t think of myself as a consumer. I buy stocks for the purpose of selling them at a later date for a profit.

I see both of us as small home based second hand stores if you will. “Adrian’s Attractive Antiques” and “Deaddog’s New Paradigm Bazaar”

Where as you have an eye for value and shop the market for merchandise that the owner doesn’t recognise the future value of, I tend to jump on a lot of bandwagons and attempt to take advantage of the latest trends.

Where you buy merchandise that pays you while you wait for the public to recognise the real value, I have to be a little quicker. If the bandwagon I hop on starts to go downhill I have to jump off to avoid getting hurt badly.

So although our stores are small, we are both buying inventory that we hope will bring us a profit somewhere down the road.

Now I have to ask you, why do you think of yourself as a consumer?

PS Bought BMO Mondat at 62.50
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:So although our stores are small, we are both buying inventory that we hope will bring us a profit somewhere down the road.
With my trading hat on, I'd say yes; as a long term investor, no.
deaddog wrote:Now I have to ask you, why do you think of yourself as a consumer?
For the bulk of my portfolio which is buy and hold, I want to buy the securities as cheap as possible, hence I'm closer to a consumer looking in the store flyers to see what's on sale. I definitely don't feel like a store owner as I don't offer my inventory for sale to the public.
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Re: The Daytrading & Swingtrading Thread

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I have noticed over time that stocks mentioned on BNN's Market Call, usually the low priced stocks (below a buck) take quite a jump. E.g. today 03/07 TKK-X went from .21 to .335 on about 700,000 shares. It flatlined all morning and then jumped.
I am curious at the process.
a) the stock is mentioned , within a minute there come a bunch of bids. The buy bids must be at market I would think, or maybe a penny higher.
b) where do the sellers come from ? Are there high sell stink-bids lurking ? Or do the sellers react like the buyers and rush to put in high sell bids and hope to luck out ?

added : or are short sellers jumping in ?
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Re: The Daytrading & Swingtrading Thread

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TKK:

Pump and dump :wink:
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:TKK:

Pump and dump :wink:
I guess you did not read or understand my question.

I did not ask if I should buy, I wanted to know how someone would pay .33 for a stock priced at .21,
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Re: The Daytrading & Swingtrading Thread

Post by AltaRed »

Level 2 quotes always show a string of bid and ask prices that diverge from market. So in upward momentum trading, eventually a high 'ask' can get triggered as price gets bid up (from someone willing to sell at 33 cents). Just the opposite of a low 'bid' (stink bids).
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Re: The Daytrading & Swingtrading Thread

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AltaRed wrote:Level 2 quotes always show a string of bid and ask prices that diverge from market. So in upward momentum trading, eventually a high 'ask' can get triggered as price gets bid up (from someone willing to sell at 33 cents). Just the opposite of a low 'bid' (stink bids).
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Re: The Daytrading & Swingtrading Thread

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eezee wrote:
deaddog wrote:TKK:

Pump and dump :wink:
I guess you did not read or understand my question.

I did not ask if I should buy, I wanted to know how someone would pay .33 for a stock priced at .21,
I guess I didn’t. I thought you wanted to know why the sellers were selling.

Unless you talk to every individual seller you can never know why they are selling.

There were about 20 million shares that changes hands under 5 cents. You have to think accumulated by what is referred to as the “smart money” Whether they had anything to do with the BNN piece, they took advantage of the run up to distribute their shares to the public.

Being a cynic I’m always suspicious of anyone recommending a stock. If I wanted to accumulate a stock I’d keep my opinion to myself. If I had a pocket full of stock to sell I’d probably push it.

As for they buyers, they get caught up in the buying frenzy. Fear of missing a move. If there is something to the rumor , watch for a shakeout the next week or so. That amount of volume in one day is abnormal for that stock. There are warrants out there that make shorting the stock low risk.
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:
eezee wrote:
deaddog wrote:TKK:

Pump and dump :wink:
I guess you did not read or understand my question.

I did not ask if I should buy, I wanted to know how someone would pay .33 for a stock priced at .21,
I guess I didn’t. I thought you wanted to know why the sellers were selling.

Unless you talk to every individual seller you can never know why they are selling.

There were about 20 million shares that changes hands under 5 cents. You have to think accumulated by what is referred to as the “smart money” Whether they had anything to do with the BNN piece, they took advantage of the run up to distribute their shares to the public.


Being a cynic I’m always suspicious of anyone recommending a stock. If I wanted to accumulate a stock I’d keep my opinion to myself. If I had a pocket full of stock to sell I’d probably push it.

As for they buyers, they get caught up in the buying frenzy. Fear of missing a move. If there is something to the rumor , watch for a shakeout the next week or so. That amount of volume in one day is abnormal for that stock. There are warrants out there that make shorting the stock low risk.
OK.
I don't think it was coincidence that this stock took off after being mentioned on BNN.
Assume that the BNN guest is not involved in any shenanigans.

a) there may be 'stink' ASK orders out there by stockholders. Well, not stink but considerably higher than the current price.

b) day traders are waiting for a penny stock to get mentioned.
(history shows that low priced stocks mentioned on Market Call usually jump higher)
So when a penny stock gets mentioned day traders put in naked shorts at a fairly higher price. The buyers pretty well need to put market orders to have a hope to fill. Thence the rapid spike in price.

The subsequent action on this stock for the remainder of the day, (gradual drop in price) seems to bear this out.
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Re: The Daytrading & Swingtrading Thread

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eezee wrote: OK.
I don't think it was coincidence that this stock took off after being mentioned on BNN.
Assume that the BNN guest is not involved in any shenanigans.
I don’t know what time the interview was compared to when the stock spiked.
Who was the guest? Why would he mention that particular stock if he didn’t have some involvement?
a) there may be 'stink' ASK orders out there by stockholders. Well, not stink but considerably higher than the current price.
This is possible. There may have been stop limit orders looking for a breakout. There is nothing on the chart that leads me to believe that. It’s more likely that someone is taking a position in the company. That kind of volume usually denotes professional activity.
b) day traders are waiting for a penny stock to get mentioned.
(history shows that low priced stocks mentioned on Market Call usually jump higher)
So when a penny stock gets mentioned day traders put in naked shorts at a fairly higher price. The buyers pretty well need to put market orders to have a hope to fill. Thence the rapid spike in price.
The subsequent action on this stock for the remainder of the day, (gradual drop in price) seems to bear this out.
I don’t think so but that’s what makes a market, two different opinions.
Day traders don’t usually trade low volume, wide spread pennys. For a daytrader you need the liquidity to get out of a position quickly without moving the price.
I’m guessing but my take is that the company is either doing a big promotion at the moment, or there will be an announcement in the near future( drill results or something). Watch the volume. That will tell the story.
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Re: The Daytrading & Swingtrading Thread

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Can't remember the guys name. The time is dead on, BNN Market Call is from 1:30 to 2:00.
Wish I could post the chart, sadly don't know how.
I got it on globeinvestor. If you have time check it
I watch Market Call regularly just to hear the guests opinion. Occasionally I check out stocks mentioned on Globeinvestor. Believe me, lesser known names with a low price regularly go up, if only for a day or two. But this one was spectacular.
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Re: The Daytrading & Swingtrading Thread

Post by Shakespeare »

For those brave enough (i.e. that figure the price of oil won't collapse), COS may be a trading candidate.
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Re: The Daytrading & Swingtrading Thread

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Strictly a technical trade: Buy IFSIA at 13.30
On Thursday price spiked lower then recovered most of the loss.
Volume was 2.5 times average volume.
I bought on Friday with a buy stop placed just above Thursdays high.

My stop is at 12.50 and my initial target is 15.70.
Risk : Reward = 1 : 3
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:Strictly a technical trade: Buy IFSIA at 13.30
My stop is at 12.50 and my initial target is 15.70.
Risk : Reward = 1 : 3
Stopped out @ 12.46
Loss 6.32%
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Re: The Daytrading & Swingtrading Thread

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Buy: PRGO at $89.68 near the close today.
A pharma company with reasonable fundamentals.
Earning report seemed to knock it down last week as they missed on the revenue side.
Stop at 87 Initial target at $99
Risk reward: 1:3.5

At this time I am risking half a percent of my account per trade.
Usually risk 1% but the market hasn’t confirmed an up trend.
To clarify, the 6.3% loss reported on the last trade was based on the stock price.
The loss was just under 0.5 % of my account.
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Re: The Daytrading & Swingtrading Thread

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Buy HLF @ 57.24
Stop @ 55.75 Initial Target 62
Risk $1.49
Risk/Reward 1:3.2
Risking less that 1/2 % of account.
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:Buy HLF @ 57.24
Stop @ 55.75 Initial Target 62
Risk $1.49
Risk/Reward 1:3.2
Risking less that 1/2 % of account.
Stopped out Nov 23 @ 55.73
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Re: The Daytrading & Swingtrading Thread

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PRGO trade closed @ 99.98 gain of 11.5%

New position in ENB. (NYSE) 34.67
Stop @ 34.25 Initial target 36
Risk to reward 1 : 3.2
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote: New position in ENB. (NYSE) 34.67
Stop @ 34.25 Initial target 36
Risk to reward 1 : 3.2
Hit initial target
Sold 1/2 position @ 36.20
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:
Hit initial target
Sold 1/2 position @ 36.20[/quote]

Sold remaining this morning @ 35.10.
Hindsite says I should have taken it all off at the target but that wasn't part of the plan.
I'm back to 100% cash and will not trade any more this year.
Here is a summary of the posted trades.

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Re: The Daytrading & Swingtrading Thread

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Dipping my toes back into the market to see which way it’s flowing.

Buy ½ position of AKRX @ 11.01

Buy stops in on SIMO and SSCS

Looking for breakouts.

Risk = 0.8% of account per position.
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Re: The Daytrading & Swingtrading Thread

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SIMO: Full position @ 21.35

SCSS: Full position @22.60
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