Any other swing traders?

Homeschoolma

Junior member
Great! Do you swing trade or are you in the learning/research phase? I've been told my style is unorthodox, but it works well for me.
 

Rainmaker

Active member
I spent many months researching and backtesting but am now actively trading quite successfully. Would be happy to discuss via e-mail.
 

jvsmith

Newbie
Yes, it seems to work well for me, I am currently experimenting with Kagi charts, which look quite good at picking out the swings and identifying exit points.
 
Rainmaker/Homeschoolma:

If you discuss it here, you'll find that very quickly all the other 'closet' swing traders will join in, and you'll have yourselves a merry swinging thread. :D
 

Rainmaker

Active member
I'm on the look-out for the oldest swinger in town.... predictable, but had to be said!
 

Absolutely Barmy

Junior member
Thank for starting this thread.

Lets get it active

What to swing trade ?

I am looking at

Rio Tinto

Inchcape


at the moment


Which one's are you trading


John
 

barjon

Legendary member
John

I'm running longs in RB and CPG

Signal for short in mks, avz, bp which I haven't traded
(I won't trade against ftse trend)

good trading

jon
 

Homeschoolma

Junior member
My favorites for holding long are CURE and WFT. For CURE take a look at it's chart for the past three years. With WFT look at it's Year-to-date chart. You'll see why I like them at this time.
 

Homeschoolma

Junior member
Cute Jonny, I like your sense of humor.

Rainmaker, my e-mail address is [email protected]. I'm happy to share my strategies here for anyone who wants to share. I'm always looking for new ideas to improve my trading skills.
 

eddiecomestotown

Junior member
CURE and WFT??

Homeschoolma,

Would like to know why you have choosen these shares. Im new to this game, and it wasn't obvious to me why you had choosen them.

Cheers
 

Homeschoolma

Junior member
Re: CURE and WFT??

eddiecomestotown said:
Homeschoolma,

Would like to know why you have choosen these shares. Im new to this game, and it wasn't obvious to me why you had choosen them.

Cheers

I'll answer your question in two posts. The first will talk about these two stocks specifically, and the next (which will be very long) will talk about how I find them.

First I should remind everyone that I'm in the U.S. and trade stocks from our Nasdaq, NYSE, and Amex.

CURE is one that I've traded in the past and purchased last week. Look at it's chart for the past three years. Every year around September-October and March-May it does a sharp dip down to @ $13 per share, and then does a sharp rise. I hope to sell it around $17. Back in May I bought at @ $13 and sold too soon at $15.

WFT is one I found this weekend and purchased today. Look at it's chart. Just below $36 seems to be it's lowest point for the past year. I hope to sell at least at $38, but I'm going to watch and see how much can get out of it.

CURE is a Nasdaq stock and WFT is a NYSE stock.
 

Rainmaker

Active member
Actually - come to think of it, many of my losing trades have been as a result of going against the market trend, so I like your filter of not opposing the market direction. Thanx!
 

Homeschoolma

Junior member
My strategy

This is my strategy at this point in time. It will change over time as I learn new techniques and other strategies to improve my trading. Please keep in mind that I'm the United States and trade only with our markets. My style may not be applicable to other markets outside the United States.

As many of you know, the US releases quarterly earnings reports. Most companies release them in the months of January, April, July, and October. Because the US markets drops the most during the months of September-October and March-April, I do most of my buying in October (with the intent to sell before the end of December) and April (with the intent to sell before the end of June). I have noticed a pattern where most of my losses occurred in the first quarter (January-March) and I no longer trade during that quarter. The summer quarter (July - September) tends to be flat for me overall, so now I only trade in the second and fourth quarter.

I use stock screeners from different sites to find the stocks I want to trade. Here's one site I like to use. http://moneycentral.msn.com/investor/research/wizards/SRW.asp
After the second week of October or April, when the reports start showing up, I search with a screener using these parameters.

Debt/Equity ratio of 0.3 or less
Gross Profit margin of 10% or more
Return on Equity of 10% or more
P/E ration of 15 or less
Earnings per share (12 month) of $1 or more

Now I'll be given a huge list of potential stocks, but most of them show financial numbers from the previous quarter. I must weed through them to find the ones that are current.

Once I have a list of stocks with newly published quarterly reports, I look at everything else I can find about them.

Volume - I look at trade volume because if a stock isn't trading a few thousand shares every day, it's frustrating to buy and sell.

Insider Trading - If the insiders are selling, I usually avoid the stock because they're jumping ship. The only exception I'll allow is if there was a phenomenal spike in it's chart that the insiders took advantage of.

Chart volatility - Too obvious to explain. Well, for those of you new to swing trading, a chart with a flat line is ugly to a swing trader. Also, a chart where the stock is at it's peak or falling isn't attractive. I wait until it appears to have bottomed out or is just beginning it's recovery.

Recent News - To try and avoid any nasty surprises.

WFT is the only stock I have that does not fit my parameters. It's chart history is what I'm basing my decision on. Hopefully this won't be my bad choice that I have to bail out on, but it's possible and I make at least two bad stock choices each year.
 

Homeschoolma

Junior member
I think SRDX is in recovery. Although it's P/E is ugly and it's quarterly report comes out Oct. 29, it's chart and other financials look attractive to me and I bought it at $27.70. I hope I can sell it at $30. SRDX is a Nasdaq stock.
 

eddiecomestotown

Junior member
Homeschoolma,

Interesting strategy. There was some research a few years ago that looked at how brokerages recommended shares.

What they found was that they started off with a good recommendation, and as results were about to be released revised them down. Results would come out better then the revised estimates and the stock would rally.

This would lead to a boom/bust cycle - it sounds like you may be capitalising on that.

Dont have any links to this research. Its just something that stuck in my head as a reason to avoid broker recommendations.
 
 
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