To answer numerous requests on this subject,here goes:
First I keep on the list ALL "failures" from the day before.
Failures are the ones if you are watching short,that FAIL to close down(red).
So all the green closes are kept,from the previous days watchlist.
The first scan I run everynight is "gained 15% in last 2 days".
Then because it is very possible to miss some of todays huge gainers with this scan, (can you see why?),I run the "gained 8% in 1 day" scan.
Then I start a scan at "gained 40% in last 5 days" (and keep toggling around the days and %'s to try and find the longer term gradual gainers).
I will also run this scan to find the dreaded "red candle above the upper bollimger band".........
stocks where close is above upper bollinger band(20)and close is below open and price is between .5 and 20 and volume is greater than 200000.
The 8% in 1 day and 15% in 2 days I start with the price between $1 and $20, then on the 15%/2 days I run the scan with price adjusted to .01 to $1 to find the whacky real pennies.
A few folks have said I put up too many watches...it is to my benefit to do so.
I have no crystal ball with the price action these will take let alone whether they will EVEN BE TRADABLE,given the volume and the spread on any given day.
Out of 20 watches only maybe 5 or so may be tradeable,I know this for a fact,day in and day out this happens,it is the way with this kind of stock.
I have no problem at all watching the number of watches I put up.
Also I chart every new one that hits the scan,only failures I need not chart...I get the feeling that the folks that just want 5 or so watches don't even take it serious enough to chart even 5,this blog doesn't hand feed the picks..sorry a little work is needed on ones part.
One thing is for certain,most of the work is done in finding "live" watches...I don't miss many of the running charts as I scan everynight as hard as I can to find them and remember the symbols that have clicked for me in the past
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15 comments:
muddy,
thank you so much for your post/blog, etc. i'm very new to all this and all the info you post is great.
You're the man Muddy, keep on truckin', I feel like I'm on the start of a sick winning spree, I hope to go from 6 to 25k by 2009 following in your wake. Will let ya know come January!
-red31
keep up the good work Muddy, I don't know who is asking for fewer picks, please keep doing what you are doing... this has been an entire college degree's worth of information for me, I'm sure others feel the same. Unreal the amount of information being shared in blog and chatroom, I try to pass on what I've learned on my blog, but I'm just one step ahead of the beginners ha.
ARA is another one to watch for short, some serious breakdowns on multiple charts. hasnt been this low since 1994
I,too, like more watches as opposed to fewer. For those who have trouble following many watches, managing more of them is something that must be done and something to which one should aspire (I'm one who must learn). Related to that, I'm wondering if the comments come from those who are ineffectively managing all those watches; maybe without proper tools. I'm guessing you don't watch charts of these 20-30 stocks throughout the day. Do you use the Scotts HOD list as a way to look for your watches derived from scans the night before as well as daily movers which scans didn't pick out? Also, what do you use for alerts to warn you that your picks from the night before are "making their moves?" If your picks from the night before don't hit the HOD or trigger any alerts, do you even bother with them during the day?
Knowing how you manage your picks during the busy trading day may help folks overwhelmed by so many of them. Thanks so much.
bluecollartrader,
It's an easy watch with the Scott watch lists.
I have 4, 22" monitors running at once plus another trader,Laura,helping me watch so for me it's a pretty easy task.
Thank you for your reply, Muddy.
Just like any job, having the right tools is half the battle. Much appreciated.
Hey Muddy,
Thank you for this post and sorry for the late comment, but I'm glad you're sticking to your guns and more importantly you're also telling others to learn put in some effort or don't bother learning this method at all. I wish I had a 'Laura' in the same room as me, but I have the chatroom with some awesome chaps. Cheers to you and the room.
Hi Muddy, there is tons of information to find in your blogposts!Thanks for sharing your experience with us here! As I've been reading your blog every other day I get the feeling I've only hit the tip of the Iceberg. I have a question on the HOD list. How would you define the formula for that list? Reason I'm asking is that I don't use Scotttrader and was wondering if it is possible to replicate this HOD list in Stockfetcher or Trade-Ideas. Trade-Ideas has a filter scanning for 'Stocks approaching NHOD' I have not had the chance to test it yet.
Anyway I love your work Muddy. Respect.
JeePee..thanks
The goldmine value of the Scott hod list is that it SCROLLS...you see the action the SECOND it happens...it is not a list just sitting there...it's moving at split second speed...
Scott doesn't even know what they have,believe me,i was friends with the Scott local rep here...it was pitiful what they didn't know
here's a screenshot of Scott hod list
Click on it to enlarge
http://greenonthescreen.blogspot.com/2007/01/scottrade-market-movers-screenshot.html
try this...tiny url
http://tiny.cc/Oyt3j
Thanks Muddy, interesting indeed.Looks like I will have to open a Scott account shortly. ;-)
Hi Muddy,
The scott hod/lod list scrolls pretty quickly, with hundreds and thousands of stocks. How do you decide whether something is interesting or not if it wasn't on your watchlist?
Thanks.
Thank you for sharing your experience with us! Your posts are very informative and helpful. Many thanks to you!
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