BEAS,SEBL,PSFT

[Naz]

I like looking for stocks that are at the extremes of their moves because they have the most to move when they break up or breakdown,which means more profits either way.I realy dont care which way they go i just watch until they make their move.

Three stocks that i have my eye on at the moment are BEAS,PSFT,SEBL

BEAS is extremely strong against the market even after running up about 45% just recently.For three days its been consolidating and trying to get thru realy strong resistance of $14.This gives a realy good level to work off either up or down.

I will study BEAS today on the level 2 screen,identifying the real players and how they like to play their game.Then at some stage i hope they make their move long or short.Which will give me the chance to strike with good stops and great risk reward moves.If they get boring i'll put it on a market minder with an alert to tell me when they're going to have a go at a certain level.

Some traders put a buy stop in just above resistance and set their alert at the same level.Then if it dosnt breakout during the day they dont get filled.But if there is a fast breakout their alert tells them and when they bring up the stock they're already in the trade.They can then manage the trade with a tight stop and keep on the look out for any head fakes.Unfortunately because of the Nasdaq uptick rule this wont work for breakdowns.

If the stock moves in their direction they can then trail the stops.The good thing about this is the quick entry on breakout.The bad thing is getting a quick fill only to find out youve just had a fake out and the stock is selling off big time.

 

[Naz]

Just a note to give the update on these 3 stocks

BEAS broke out from the resistance but ater advancing came back and hit the stop for a small loss.

PSFT was a buy on the open and ran up 7.5%

SEBL was also a buy on the open with 8.5% profit on the day

Both SEBL and PSFT were easily run during the day with trailing stop losses.

 

[Naz]

Here's the update.

SEBL up 25% at its high of the day from the original entry point

PSFT up 20% at its high of the day from the original entry point

Beas up 17% at its high of the day from its breakout level

Now we cant expect to many people to have been lucky enough to capture all those moves.However it goes to show that the astute longer term holder of stocks can do very well by looking for entries as if he were a short term trader.He would have the ability of entering with wider stops.His risk reward would be fantastic because his entries would be much better.

PSFT and SEBL especialy were fantastic entry points(check them out on bigcharts.com and key in the stock symbols and look at them over 5 and 10 days)

I know 2 longer term traders that do this very well.They buy a basket of stocks for 2/10days in the direction of the market.Along the way they sell those stocks that dont perform or underperform or give them hard times on entry.They are left with the real flyers and manage the trades daily with extreme skill until they're stopped out.