Trading the markets with Alan Rich.

[Naz]

This thread will be dedicated to everyone who enjoys day trading US stocks and will include swing trading UK and US stocks as well.

Although i day trade the US markets primarily, i see many swing trades set themselves up from day trading opportunities both in the US and the UK. I also find the skills i use in day trading are so helpful in being able to swing trade profitably.

Spotting hot movers in anytime frame can be a problem. The more eyes out there the better. So if you think you might have found one let us all know. UK or US it dos'nt matter.

My resume is as follows. I was a Nasdaq level 2 instructor in the city, had a regular slot on CNBC Europe appeared on the BBC, in the FT and a number of UK and US financial publications. I run the US day trader product on Via-trader.com where i post live trades and market commentary along side my bespoke real time scans throughout the day.

I also coach beginners through to experienced traders 1-2-1 and hold numerous free trading events at top UK hotels attended by 80-200 people.

Most of all i love to trade and hope together we can talk about trading and some of the stocks were all following.

 

[Naz]

Trading the US markets can give you some free time so i teach and swing trade the UK and US market.

Here's a trade on UK stock VED i took yesterday as a day trading entry that i'll try and swing trade. If anyone wants to write anything up on the mining sector and VED feel free. i just trade it becuase i try and go where the action is and that stock's quite hot.

Alan

 

[Naz]

I run a US day trading section on a commercial web site and i'm always looking for the hottest stocks out there for our members to make money.

Here was breakout entry i called live that gave me my days money in one trade.

Alan

 

[Naz]

US stock TZOO is hot in the daily charts as well thats why i was following it. In day trading you only need a dollar run and you've made your days money. I believe by focusing on hot stocks you have more opportunity to achieve this.

TZOO was hot just look at its daily chart. I wish i'd been swing trading it over a few days,

If anyone wants to find out the story behind this multi day move then by all means post it.

Alan

 

[Naz]

Here's another day trading entry that i turned into a swing trade. Debtmatters, another UK hot stock.

I got in to late after the turn at the bottom. sweated on the first pullback but rode it until the shooting star forced me out. Not a bad return for a months work.

If this thread had been going then i could have mentioned my trade. If anyone has any other hot stocks US or UK that we can focus on for day or swing trading or a combination of both then by all means let us all know. Maybe its a technical set up maybe its just momentum from a story thats unfolded.

Lets bear in mind that these will just be personal observations from us all and not an indication to buy or sell any stock as trading can result in loosing all or part of ones capital.
There thats the disclaimer done.

Alan

 

[Naz]

url removed

For day trading i use an electronic scanner. I'll show some examples of its stunning accuracy next week.

The computer sees everything quicker than a human. If something is moving then the scanner catches it in the blink of an eye. My added market commentary gives the heads up on many of the moves before they happpen. Like this $14 dollar move on GOOG that i alerted members to recently.

I attach the powerpoint slides from last free show and my account details showing the 1,400 point run i made during the day along with the chart.


Alan

 

[Naz]

Many look for boring stocks that dont go anywhere. On the US section of a certain web site i follow the things that move, hopefully on this thread it will be the same.

Here's an example of a 400 point move i alerted members to whilst the idex just trundled along. In day trading you need to be where the action is thats where the money is made.

Alan

 

[Naz]

The only person i find that benefits from stocks that go nowhere are our brokers. I can scalp the Nasdaq with the best of them but you know i worked with one US trader from New York who was always into hot stocks, sometimes thats the big liquid stocks sometimes not so liquid but i try and find them trading over a million shares/day if possible.

Instead of doing multiple trades nickel and diming and paying big bg brokerage fees i try to average a minimum of a dollar run a day. Thats 100 points for spread betters. Do you know what, it cut my trading costs down because the stocks i followed had a had a good chance of moving strongly and giving me some kind of move at some stage during the day rather than just going nowhere and leading me to over trade.

Ok so i took the idea into swing trading. Just look for whats hot and has a good chance of moving. Guess what i traded less and made more money.

On this thread hopefully we can try and find stocks that are hot for potential day or swing trading at some stage. Along the way we can talk about the two different styles and how one can feed into the other.

 

[eurotrader52]

US stock TZOO is hot in the daily charts as well thats why i was following it. In day trading you only need a dollar run and you've made your days money. I believe by focusing on hot stocks you have more opportunity to achieve this.

TZOO was hot just look at its daily chart. I wish i'd been swing trading it over a few days,

If anyone wants to find out the story behind this multi day move then by all means post it.

Alan

Naz, would you consider companies that report earnings to qualify as "hot stocks". Its nice to see annotated charts and a polished trading system. What is your strategy for trading nasdaq stocks during the upcoming "super-earnings week"? Do you trade options to take advantage of the big moves anticipated in select nasdaq companies (i.e., AAPL, CKFR SLAB GOOG, SWFT etc,)

 

[Naz]

Wasp for the last five months, i've been held back from posting what i actualy do day in day out. I just got the green light to run a thread telling people just exactly what i do. Some of that involves a commercial web site but not all. This a thread about how i focus on hot stocks whether thats UK or US. The web site will come into it at times because thats where i do my live US trading but not always.

If i happen to run a FREE trading evening then i dont see that as a problem, infact i aim to invite more traders to share the stage with me to give people out there an insight in to how others view and trade the markets.

 

[Naz]

Hi Eurotrader. Yes of course i would consider stocks reporting earnings as potential "hot stocks."

I dont use options to trade them because they can backfire against you dramatically. I sometimes trade them post market using ECN's. However i also place them in my scanner the next day to see how the market reacts to any gap they've made. If they gap and run i'll know about it the moment they start moving. If they fill the gap i'll know about that as well. Do i have to keep looking at the charts? no. I let the scanner do the work for me and alert me to the ones that are moving.

If anyone has any opinions on earnings surprises or ones to watch then this is the thread to mention it on so that we can all check it out if we so wish.

Alan

 

[jimmy1jag]

Hi Alan,

Good to see you about again. I've not been about for a wee while as I've been off doing my proper job, but will be getting back in there early to mid May, having learnt a huge amount in the 1st 3 months of this year.

This looks like being a sound thread. Good on you.

Talk to you soon.

Regards

James

 

[Naz]

Thanks James.

This thread is about letting everyone know whats hot or has the potential to be hot, day or swing trading. Then maybe you traded it and wanted to share how you traded it either day or swing trading. Mentioning a stock is not an indication to buy or sell it, its just the heads up so others might keep an eye on it.

You might be a day trader, grab a dollar move out of it, make your days money and move on. Someone else might spot it and think i'll wait for my entry and swing trade that one.

For example i made 12% in two days out of the attached UK stock, taking a day traders entry and running it for two days getting out at the top of the swing. I couldn't wait for the pullback but anyone that had seen my trade might of thought i'll watch that and see if it sets up far another move.... and guess what it did and ran another 100% in five weeks!

Alan

 

[timsk]

Welcome Back Alan!

Hi Alan,
I say 'welcome back' as it seems like a very long time since you last posted in earnest!

I am now starting to focus on swing trading the U.K. market E.O.D., so I am pleased that you are including this in your thread. The main reason for this is my concern about U.S. stocks gapping against an open position - and through stops. On average, the damage won't be as great when this happens with U.K. stocks as it would be with U.S. ones. True, the moves aren't as large, but this negative is offset by the positive of a good nights sleep!

Alan, it's really good to see you posting again and I look forward to following the thread.
Tim.

 

[Naz]

Hi Tim,

Its good to be back. Everyone knows i day trade but not many know i swing trade. If you trade for a living like i do then why not do a bit of both. The skills that you use for day trading help out when you swing trade.

I see swing traders pick stocks and think, you know what i could have got in 24-48 hours before your entry just by looking it from a day traders perspective.

Sometimes i day trade a stock, open out the big picture on the chart and think you know what in a few days i think this stock has the potential to move big time. So i just keep an eye on it.

So why not have thread that puts both styles together, see what happens and what people come up with.


Alan

 

[Naz]

Take US stock TZOO. If you look at it in the 60min charts its just pulled back to a fib level and bounced. Could it do another leg up next week? Well its certainly a hot stock and its got the potential to do it. So you know what i'll put it in the scanner on Monday and forget about it.

If it starts setting up for one of my proprietary intra day set ups i'll get the alert immediately along with the members. Then i can make the decision on how i want to play it. Small move bank it and move on, swing trade or maybe just an all day trade.

Maybe it just hangs around near the highs all day and i think ok i'll watch you the next day and see if you do anything. However its played its got potential because on a big day its proved it can run up to $10 before it sells off. Maybe thats the highs and its fizzled out who knows.

All i'm interested in is that its hot and got potential. How i or anyone else wishes to play it, if at all, is up to them.

It'll be interesting to see what happens.

The TZOO move is earnings related by the way.

Alan

 

[Naz]

Next week there are lots of US earnings coming out. If any reader of the thread spots something that has potential like TZOO then feel free to mention it. If we're into the US and Tim or anyone else sees something looking good in the UK then once again mention it. Dont worry if it dosnt run at all, its just the fact that its been mentioned for possible potential. If there's a story that goes with it then by all means let us know.


Alan

 

[nobrainer]

Naz,
I daytrade uk cfd's. I'd be more than happy to post a few of the more interesting stocks , time permitting. Don't expect any technicals though as I don't use charts!!
Next week, is the the biggest week in the quarter for uk traders , so there should be loads of opportunities.
I also swing trade a few stocks now and then .You mentioned DEBT, and its very interesting.Other stocks in that sector worth an eye are DFD, ACG and INVO.I'm just holding INVO at the moment but this sector is just flying.Always mileage in watching it when the uk banks are reporting or when there is any data on consumer credit. Both tend to bring this sector into focus.

 

[Naz]

Great, thanks nobrainer.

Lets make sure that if we already in a stock we mention it , just as nobrainer has.

Alan

 

[Naz]

I trade the mining sector in the UK and one way to smooth things out is to trade MLW (Merrill Lynch World Mining trust).

Recently they introduced some warrants. I trade these but they're volatile so its best to leave them alone. I attach a chart of the stock below.

Alan