Stocks with long term momentum characteristics

Most people on the street look at momentum traders as low life form. It is considered immoral to buy something just because it is going up. What a waste of MBA if you can make money without reading balance sheets.

But if you do not have those hang ups you will find many ways to trade pure momentum based system with low risk. If you design it properly,you will not miss any major trends. I have been discussing various methods of trading momentum with a select few readers of the blog who had shown an interest in learning about them. So far we have discussed 5 different ways or variations of basic momentum strategy and various tactics and tricks and scans to make them work.

A well designed momentum strategy identifies opportunities in all sorts of market environment. The strategy is extremely simple to use. All these things require no expensive real time data software, no newsletter fees, no understanding macro stuff like interest rates,inflation, deflation, or stuff like PE, cash flow, earnings, or stuff like double top, C&W, wedges and so on. No looking at 1000 charts at night.

Here are some of the stocks identified using it over the course of last few weeks( only those above 30).

AEOS,American Eagle Outfitter
AEPI,Aep Industries Inc
AKAM,Akamai Technologies Inc
AXR,Amrep Corp
BAP,Credicorp Ltd
BDC,Belden Inc
BGC,General Cable Corp
CHAP,Chaparral Steel Company
CHTT,Chattem Inc
CPY,Cpi Corp
CRM,Salesforce.com Inc
DECK,Deckers Outdoor Corp
ELE,Endesa Sa
ENR,Energizer Holdings
EZPW,Ezcorp Inc Cl A
FLSH,Msystems Ltd Ord
FMD,First Marblehead Corp
GES,Guess? Incorporated
GVA,Granite Construction Inc
GYMB,Gymboree Corp
HITT,Hittite Microwave Corp
ICE,Intercontinental Exchange Inc
INFY,Infosys Technologies Ads
LFC,China Life Insurance Company
MWRK,Mothers Work Inc
NEU,Newmarket Corp
NRPH,New River Pharmaceuticals Inc
OMG,Om Group Inc
PCLN,Priceline.com Inc
RIMM,Research In Motion Ltd
SHOO,Steven Madden Ltd
UARM,Under Armour Inc
VIP,Vimpel Communication Ads
WRLD,World Acceptance Corp

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

4 comments:

walter said...: wow! Barry Ritholtz agrees with me... this is what I have been saying all along:

My email hostility-o-meter has moved from yellow to red (but still has more room before its pinned), the trolls and sock puppets (new word for me!) have come out hiding. I keep hearing about the excess of Bears, but I neither see nore hear them anywhere. Sentiment is gloriously bovine...

from:
http://bigpicture.typepad.com/comments/2006/10/have_allt_he_be.html; Oct 15, 2006, 11:08:00 AM
Pradeep Bonde said...: That is because he made Dow 6800 by year end prediction and he has thousands of followers who followed his advise blindly. Obviously when they missed out on a rally, it is now a case of post purchase dissonance.

The other thing is if you have seen few interactions between Barry and others on Real Money, no one can win an argument with him. He will twist data to fit his hypothesis. Call others idiot. So now people have their revenge.

The market is very ruthless in punishing sloppy thinking.; Oct 15, 2006, 12:01:00 PM
Joseph said...: Your link to google groups does not work -- where can I find your discussions regarding momentum trading?

Thanks!

Joseph; Jan 21, 2007, 4:03:00 PM
Pradeep Bonde said...: If you go through old posts you will find many posts talking about momentum trading strategies. 90% of the posts here are either about earnings or about momentum.; Jan 21, 2007, 8:32:00 PM

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