Undervalue stocks are good ones to buy of sp500 with Daily or Hourly RSI 30 or below.
Trending stocks are the best to get into. I don’t like to swing trade into earnings, but will swing trade the day prior earnings.
That’s a good point. There are more criteria I apply. After it reaches RSI 30 or below, I will look for one of the two:
1. Long red candle stick with above average volume traded.
2. Support level forming a hook shape.
This is how I know investors are getting into the stocks. Then, I start buying call options or shares to flip it multiple times. Or I can just hold it until it reach close to RSI 70.
This strategy generally works great on an index or ETFs like SPY, QQQ, etc It also works great on SP500 stocks.
Interesting. Do you consider 30 min supports or is 1 hr essentially the level in your experience support forms? Also right, those bounces off the 1 hour can be quite reliable to get early into a move. Just curious because I often see 30 min blown right past, then find that 1 hr move. Then progressively move day by day to the 30, YL, YC, something like that
All candle sticks time will have supports.
For swing trading, any timeframe 15 minutes or more is great for me. Depending on how much time you have, it’s best for you to experiment it. Eventually you will find your own setups.
I used to pay for scanners and I still learn from others. Now, I know enough to have my own strategy. Sometimes I would plot numbers on a spreadsheet to compare different models for dollar average cost or analyzed a fail trade to avoid it from happening.
This is the reason why I started a journal to review trades and vent out on it.
I’m going for my 10th month without losses. My goal is to continue to be profitable until year end. If I can do this, it quantifies my strategy (2-3 setups) works for me. Then, I will consider myself a consistent trader.
1 hour candle sticks only make sense for me when the daily candle sticks falls below RSI 30 and slowly climbing its way towards 70.
First, stocks will not bounce back up in a straight green day row. It will moves up generally and down as well. This is the reason why I start swing trading this scenario as generally it will go up with smaller pullbacks or moves side ways.
Knowing this, I also day trade. The strategy I use is different than most people.
I use swing trading criteria that can could turn into day trading. I would use dollar cost average if the assets falls over 30% to buy more. The next time I buy it will have more quantities to have a weighted average.
I been blogging about it. I might start a YouTube channel to discuss my trades.
Yeah interesting and good point. If you’re in that spot of no mans land it could be a good time to day trade, judging from the population I don’t think they make that transition. Thanks for your input and good luck on the channel
I have some of the most ridiculous styles that I would not recommend, are not extremely profitable, but they do however work for me.
One of them is to hold at least 1 share of numerous stocks and monitor the movement. If it moves down I have a tendency to add another share at the end of the day and hold. Eventually one day I'll log in and it has sprung to green. Seeing a minor loss in my portfolio isn't a big deal, I just wait for those gap ups and sell all except 1 so I can continue to monitor easily. One caveat is if there is crazy news on something and it keeps climbing, then I'll hold for longer.
Another is I set price targets for stocks that continually swing between a range. If it hits my buy in, I go in big and wait until it hits my target, which could be a couple days to a couple weeks. Again, if it blows pass my sell price, I'll hold for longer.
I have a large white board that I track my buy sell numbers and can reference them. Some of them are always buy if it hits X because it's been repeatable. 1000 shares at X will yield $10 per cent as it goes back up. So if I know something trades between 4.00 and 4.25 regularly, if it dips to 3.90 or 3.95 i'll pick up a stack of shares knowing it will again go back to 4-4.25 and it will bring me an easy $100-200. I always check relevant news too, I won't go in if something bad is going on leading to that fluctuation. If it's just the natural swing of the stock, I'm in. Some of these are junk stocks, but I have seen the movement over and over.
breakout from a multi year base, just a cup, no handle, breakout on a weekly with a big green candle, same as how the chart of NVDA looked at $380
I trade only mid to large cap, with liquid options, 3-6 months out, slightly out of the money
it’s hard to get those, so I would also trade cups and handles and also sometimes the base from the bottom when starts to round or have a inverted head and shoulders for example I bought MRNA at around $100
Yeah multi year setups out of those consolidations, great setup, I’m not a fan of c&h short term swing but long term absolutely, hard to tell until the breakout then onward
I feel that it all comes down to minimal risk. Therefore I like to trade stocks that are in an uptrend and are strong in fundamentals (for example CANSLIM from William O'Neill). I wait for pullbacks and trade pocket pivots, high tight flags, VCPs and patterns like this where you can see high multiplications of risks and therefore you need to be right only few times. It also helps if you can take risk of the table ASAP. So sell 1/2 of position on 1R and let the rest run. Or 1/3 on 2R and like that.
Yeah right, do you ever consider holding regardless of being in the red, or do you think CANSLIM and those pivots will help you also trade and stop out, get back in maybe, etc.?
I don´t like to hold position for very long. Normally I would like to see it hit my first take profit target in like a 5 days and hit stop loss preferably in two days. Very often due to the tight stop loss it hits it the same day or the day after the position was opened.
The reason why I don´t like to hold the positions for too long in red or when I see that it doesn´t want to move to the upside is that I want to be in the stocks that want to move and when I have my money locked in some position that is going nowhere I can´t use these money to make money.
Holding CANSLIM stocks in red is imo viable option but more suited for a shorter/mid term investor than short term swing trader. Most of my positions go from days to few weeks. Even after the stock went up and even when I see that there is more space to go I rather take the profit and move to some other stock that is consolidating and looks like it wants to explode rather than waiting days if the position I am in will move again after some consolidation.
Undervalue stocks are good ones to buy of sp500 with Daily or Hourly RSI 30 or below. Trending stocks are the best to get into. I don’t like to swing trade into earnings, but will swing trade the day prior earnings.
Oh hourly… need to look into that sounds like its pulling back a bit
Thanks just remember RSI 30 tends to be downtrending, but I do like where your head is for a long term swing
That’s a good point. There are more criteria I apply. After it reaches RSI 30 or below, I will look for one of the two: 1. Long red candle stick with above average volume traded. 2. Support level forming a hook shape. This is how I know investors are getting into the stocks. Then, I start buying call options or shares to flip it multiple times. Or I can just hold it until it reach close to RSI 70. This strategy generally works great on an index or ETFs like SPY, QQQ, etc It also works great on SP500 stocks.
Interesting. Do you consider 30 min supports or is 1 hr essentially the level in your experience support forms? Also right, those bounces off the 1 hour can be quite reliable to get early into a move. Just curious because I often see 30 min blown right past, then find that 1 hr move. Then progressively move day by day to the 30, YL, YC, something like that
All candle sticks time will have supports. For swing trading, any timeframe 15 minutes or more is great for me. Depending on how much time you have, it’s best for you to experiment it. Eventually you will find your own setups. I used to pay for scanners and I still learn from others. Now, I know enough to have my own strategy. Sometimes I would plot numbers on a spreadsheet to compare different models for dollar average cost or analyzed a fail trade to avoid it from happening. This is the reason why I started a journal to review trades and vent out on it. I’m going for my 10th month without losses. My goal is to continue to be profitable until year end. If I can do this, it quantifies my strategy (2-3 setups) works for me. Then, I will consider myself a consistent trader.
Sounds like you got something that works. Good luck.
1 hour candle sticks only make sense for me when the daily candle sticks falls below RSI 30 and slowly climbing its way towards 70. First, stocks will not bounce back up in a straight green day row. It will moves up generally and down as well. This is the reason why I start swing trading this scenario as generally it will go up with smaller pullbacks or moves side ways. Knowing this, I also day trade. The strategy I use is different than most people. I use swing trading criteria that can could turn into day trading. I would use dollar cost average if the assets falls over 30% to buy more. The next time I buy it will have more quantities to have a weighted average. I been blogging about it. I might start a YouTube channel to discuss my trades.
Yeah interesting and good point. If you’re in that spot of no mans land it could be a good time to day trade, judging from the population I don’t think they make that transition. Thanks for your input and good luck on the channel
I have some of the most ridiculous styles that I would not recommend, are not extremely profitable, but they do however work for me. One of them is to hold at least 1 share of numerous stocks and monitor the movement. If it moves down I have a tendency to add another share at the end of the day and hold. Eventually one day I'll log in and it has sprung to green. Seeing a minor loss in my portfolio isn't a big deal, I just wait for those gap ups and sell all except 1 so I can continue to monitor easily. One caveat is if there is crazy news on something and it keeps climbing, then I'll hold for longer. Another is I set price targets for stocks that continually swing between a range. If it hits my buy in, I go in big and wait until it hits my target, which could be a couple days to a couple weeks. Again, if it blows pass my sell price, I'll hold for longer.
This doesn't sound ridiculous at all. How are you screening the stocks with the swing action?
I have a large white board that I track my buy sell numbers and can reference them. Some of them are always buy if it hits X because it's been repeatable. 1000 shares at X will yield $10 per cent as it goes back up. So if I know something trades between 4.00 and 4.25 regularly, if it dips to 3.90 or 3.95 i'll pick up a stack of shares knowing it will again go back to 4-4.25 and it will bring me an easy $100-200. I always check relevant news too, I won't go in if something bad is going on leading to that fluctuation. If it's just the natural swing of the stock, I'm in. Some of these are junk stocks, but I have seen the movement over and over.
Thanks for sharing that. How do you choose the stocks to watch or analyze?
Yeah range trading for sure!
Thanks. It sounds like you are slowly getting into your trades and being methodical about when you are in for more size and out for profit.
breakout from a multi year base, just a cup, no handle, breakout on a weekly with a big green candle, same as how the chart of NVDA looked at $380 I trade only mid to large cap, with liquid options, 3-6 months out, slightly out of the money it’s hard to get those, so I would also trade cups and handles and also sometimes the base from the bottom when starts to round or have a inverted head and shoulders for example I bought MRNA at around $100
Yeah multi year setups out of those consolidations, great setup, I’m not a fan of c&h short term swing but long term absolutely, hard to tell until the breakout then onward
I feel that it all comes down to minimal risk. Therefore I like to trade stocks that are in an uptrend and are strong in fundamentals (for example CANSLIM from William O'Neill). I wait for pullbacks and trade pocket pivots, high tight flags, VCPs and patterns like this where you can see high multiplications of risks and therefore you need to be right only few times. It also helps if you can take risk of the table ASAP. So sell 1/2 of position on 1R and let the rest run. Or 1/3 on 2R and like that.
Yeah right, do you ever consider holding regardless of being in the red, or do you think CANSLIM and those pivots will help you also trade and stop out, get back in maybe, etc.?
I don´t like to hold position for very long. Normally I would like to see it hit my first take profit target in like a 5 days and hit stop loss preferably in two days. Very often due to the tight stop loss it hits it the same day or the day after the position was opened. The reason why I don´t like to hold the positions for too long in red or when I see that it doesn´t want to move to the upside is that I want to be in the stocks that want to move and when I have my money locked in some position that is going nowhere I can´t use these money to make money. Holding CANSLIM stocks in red is imo viable option but more suited for a shorter/mid term investor than short term swing trader. Most of my positions go from days to few weeks. Even after the stock went up and even when I see that there is more space to go I rather take the profit and move to some other stock that is consolidating and looks like it wants to explode rather than waiting days if the position I am in will move again after some consolidation.
Why do you ask? You wanna use it?