One thing that can improve your trading
In order to be successful in trading we must know how stocks move on different time frames.
If we know that then we can design methods to exploit those moves.
Simplest way to understand nature of stock moves is to
everyday
study stocks that are making big moves.
Study these moves to see if your current scans and processes are really working or not.
This takes only 15 minutes daily.
Daily study past winners and losers on various time frames and note down your observations.
If you can develop this habit you will see steady improvement in your understanding of market moves and it will be based on your own efforts.
What should you study for short term swing trading
Study stocks up 8% plus in last 5 days c/c5>=1.08 and c>=3 and minv3.1>=100000
Study stocks down 8% plus in last 5 days c/c5<=.92 and c>=3 and minv3.1>=100000
Study stocks up 5 dollar plus in last five days c-c5>=5 and c>=3 and minv3.1>=100000
Study stocks down 5 dollar plus in last five days c5-c>=5 and c>=3 and minv3.1>=100000
Those are the kind of stock moves that swing traders are interested in. By studying them daily you will understand what works and what to look for in momentum burst swing moves. Where to put stop. Where to exit. What to look for on day one of move.
If you do this for weeks and months or years you will be expert in 8% plus moves. When you study these moves over and over again you start finding small nuances to look for in successful breakouts.
A study like this will make you question some of your own guidelines for selecting trades or will make you question commonly touted market rules based on your own study.
One of the best reason for doing this is it is based on actual past winners in immediate time frame. It gives you lot of information on what is working currently.
Most days it takes only 10 to 15 minutes to do this. Some days while going through them you find something and then it can trigger a deeper study.
What should you study for longer term swing trading
Study stocks up 100% plus in last 1 year c/c252>=2 and c>=3 and minv3.1>=100000
Study stocks down 50% plus in last 1 year c/c252<=.5 and c>=3 and minv3.1>=100000
Study stocks ranked in top 25 by MDT ranking c/avgc126 rank by it and study top 25 or 100
Study stocks ranked in bottom 25 by MDT ranking c/avgc126 rank and study bottom 25
Study stocks ranked in top and bottom 25 by YTD moves
Longer term moves have different characteristics and studying them will help you find buy points as the move progresses.
A study like this will also help you debunk lot of myths like should you only buy stocks near 52 week low or high, with only low floats, or only with IBD EPS ratings above 85 , or with growth or value characteristics, or IPO in last 2 or 3 years only and so on and on.
Get in to habit of building your own market and setup. No one else can do these exercises for you.
As everyone knows if you want gains of an exercise you need to do it yourself and not outsource it to others.
