I am currently using Investools Toolbox for a lot of my research, but I have to say I am probably most accurately defined as a fundamentalist day-trader. Typically I screen stocks for good volume (average over 1M preferrably) and below $5.00 stock price. Then I look at the recent news to see what may be causing movement in the stock. Investools (not trying to sell them) provides scores for a group of fundamentals and this helps me determine potential and widdle down the list. Then I put the day trader hat on and look at the trend by looking at the (MACD 8,17,9) and the Stochastic (14,5,0). I also check the trend for the 3 or 6 month period as well as the 2 year period. All of these things combined help me decide to pull the trigger. I have to say that some of trigger decision comes down to a feeling. I will watch a stock in a lot of cases to get a feel for how it is moving, but always rely on the fjundamental scores to help make the decision. Sometimes you can look at a company like say Ford who was between $5 and $6 earlier this month. Companies of this size 'generally' find ways to recover and grow so you may have to buy low and wait it out a little. The key is don't get greedy. With the right volume, selling on a 25 or 50 cent bump in the price is okay. If you buy a $5.00 stock and sell at $5.50, you have just made 10%. Not bad considering in a lot of cases that small movement can happen in a very short period and just 3 of these trades in a month is 30% return and 360% over the course of a year. How many investors can say they average 1% increase a day on their portfolio? All of these things are in my mind when considering buys and sells. Sometimes one thing trumps another, but it's all in there. My strategy may not work for everyone and I am still learning. All I can say is do your research, take a breath before you jump and then don't get greedy. Hope this helps!
Posted April 11, 2008 (11:49AM)
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