NASDAQ Shortlist

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lloydsc

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I would appreciate some guidance, if possible, on the following issues.

In order to determine NASDAQ stocks that move My understnding that a start is to look at volume + volatility. I can establish which stocks are tyrading on volume from nasdaqtrader hoever how do I shortlist volatile stocks?

If we are determining the axe in a NASDAQ stock will this be the MM with the biggest volume in a stock year to date or the current or latest period?

I don't expect full answers but a point in the right direction would be most helpfull.

I have been doing my homework by looking at trading the NASDAQ from 6.30 GMT in-line with the methodology in the CD's from NAZ however I don't know how to establish a shortlist very efficiently.

Thanks
Steve
 
ATR approx 150 cents

Volume 1.5 million minimum daily.

These are nice movers ( not too fast and furious ) and have adequate liquidity.

Imho only
 
Thanks Guys

On stockfetcher in allows searches on ATR as a percentage. Do you have an idea how I can filter stocks with an ATR of 150cents?

Cheers
Steve
 
Not familiar with Stockfetcher Steve but I have just had a quick look at it.

I see it has pattern matching tools. Is it easy to set up for any particular pattern or does it just do text-book patterns ?
 
Salty

I'll try and put things into perspective for you and that may help a little. Bear in mind my knowledge is all theoretical at this point in time.

I want to trade NASDAQ stocks, from 6.30 GMT, that move. I can find the ones that have volumne but I don't know how to find the ones with volatility. You mentioned that an true range of 150 cents is a good starter but I don't know how to filter this information, hence stockfetcher was mentioned.

I'll be trading fibs and other S/R levels against confirmations from the axe and I'll probably use www.ta-ngo.com as a scanner for my group of fast moving stocks.

Any advice on where to point me for research is welcome.

Thanks
Steve
 
One basic way of finding volatility is to look at the charts.

Short list the stocks that fit your other parameters, then look at the charts. If you look at the daily bars / candles, you will see the highs and lows of the price fluctuation.

Look for charts with an average, and possibly consistent, high and low that you are happy with eg. average travel per day = minimum $1(or whatever you are looking for).

Do you want something highly volatile or smooth but moves a distance? This is an important decision, highly volatile stocks can cause you severe mood changes and stomach upsets if you are not competent enough :cheesy: (you know your own trading expertise and experience).

If you want very volatile, pick the charts with lots of spikes, eg open and close and a fair distance from the high and low. For stocks that move a distance but are a little easier on the nervous system, look for smaller spikes.

Not very technical, but if you have already short listed, then it could be a useful couple of hours scanning charts.

By the way, you will probably want to include GOOG and TZOO if you want fast and furious - but be warned, they can move away from your position FAST!
 
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Careful.

TZOO is exceedingly manic and only for experts, imo.

Have a look at EBAY. Great mover - ATR > 200 cents and great liquidity. And it doesn't career around like a drunken lunatic.
 
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Salty & Ardill

Thanks for taking the time to answer.

Looking at Ebay for yesterday it starting moving again at around 2.00 EST with obvious levels of S/R around the whole numbers. This is the type of stock I'm looking for (I know it's not as easy as that).

Trouble is that I'm so inexperienced that don't know how to create a watch list form scratch.

I don't know which sectors to look in and avoid or which stocks, such as Ebay, are closely matched in their characteristics. I'm lacking a basic methodology from which I can develop and start to think about and learn.

For example:

When I sit down to my desk at 6:00 GMT should I be initially looking at the Nasdaq to determine overall direction in-line with the Dow and the S&P and compare this to a strong performing sector.
From my assessement above should I be scanning for stocks that have an average ATR c$1 and then alining them with overall market conditions for futher analysis of S/R and Fib levels.

Or, should I just run a scanner against gapers, movers and shakers.

My apologies for waffling on, I'm not after disclosure of anybodies hard earned methodologies however I would be grate full of a starting point so I can determine myself that Ebay behaved how it did and why TZOO is hard to manage.

Many thanks
Steve
 
Trial and error, tears and fears over a long period I reckon.

It is easy to select a good watchlist covering the major market sectors.

But you then need to get " to know" your stocks by watching their behaviour over a fairly long period. You eventually get a feel for what to touch and what not to touch. Trading a few monsters, feeling helpless, sweaty and panicky, and then losing on them soon gives you a feel for what not to touch.
 
lloydsc

Sounds like you're on the right track as you're thinking hard about stock selection. This is very important imho.

Remember position size, there was a thread a while ago suggesting GOOG was hard/dangerous to trade....but if you reduce position size it can in fact be a beauty.

I have just 7 instruments which I trade daily, took 6 months to figure it out by watching them every day for hours on end 'till I had a very good idea of what they do and how fast they move. I have a different trade size for each to reflect volatility, risk/reward.

Good luck and keep at it...it can be done!
 
I have just 7 instruments which I trade daily, took 6 months to figure it out by watching them every day for hours on end 'till I had a very good idea of what they do and how fast they move. I have a different trade size for each to reflect volatility, risk/reward.
Click to expand...

Agree agree agree
 
It's not often we see someone mentioning Volatility as part of their position size calculations (apart from those weirdo option traders and they use something called "Geeks" - or something like that... :cool: ).

This was one of the things that jumped out of the old Turtles system at me and something (to my shame) I've yet to consider more fully or incorporate in my own trading.

Rich64 - care to give an example of say just one of your magnificent 7 Volatility ===> Position Size calcs?
 
If youre only trading stocks after 6:30 there are plenty of sites that will give you largest % gainers/losers for the session.

They will typically throw out 10 or so candidates for a free service.

Flick through those and obviously reject the ones that have gapped open and done little since.


When I used to trade NASDAQ stocks I never gave a fig for the direction of the index or the sector index. If these are moving up but your stock is moving down theres usually a damn good reason for this (which imo you dont need to know) - and so the weakness (strength) is likely to continue for the rest of the session.


Theres your shortlist.
 
BBB said:
When I used to trade NASDAQ stocks I never gave a fig for the direction of the index or the sector index. If these are moving up but your stock is moving down theres usually a damn good reason for this (which imo you dont need to know) - and so the weakness (strength) is likely to continue for the rest of the session.
Click to expand...
It just shows how two traders can see the same thing and react quite differently.

Whenever I get that situation (divergence between stock and sector and/or market index) in a trending market it keeps me out of the trade - even if all other indications are signalling an entry.

In an oscillating market, it'll have me licking my lips and looking for its brother...
 
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Bramble...

Obviously it's a highly complex mathermatical formula which I can't divulge!!!!! ;)
Seriously 'though; ERTS I might trade 500 with stop @ -10c = $50.00 max loss
GOOG would be 150 with stop @ -35c =$52.50 max loss

I just feel GOOG needs more room to "breathe" and don't have the stomach or account size to go behind $100's but it will happily give you a full $ run or more in a few mins quite a number of times a day.

I have put together my trading plan which has max loss per trade as it's cornerstone but then uses varying position size and stops to reflect the different instruments volatility. My view was that each one should be giving me roughly the same p&l opportunity each trade.

Usual caveat...easy to say, often harder to do! :confused:
 
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Get you. So the position size is still based on a 'max loss' which is geared to the 'stop' which is the discretionary part of the calc based on your feeling for the sort of movement you are willing to accept?

It's not based on ATR or anything systematic derivation of the price or price/volume (and/or price/volume/time)?
 
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