Trader's Strategy Guide
Breakout
Plays
Breakouts can be one of the most interesting plays, but you must be
very selective in choosing them. Properly identified and played, breakouts
may offer great profits within one to seven trading sessons...
STA
Plays
Short Term trading is the art of getting into a stock during a short-term trend and getting out before the trend ends and reverses. This simple plan is not simple to execute...
Moving
Average Plays
Moving
averages help measure the direction and strength of existing trends and can
help determine when a trend change has taken place. A moving average line
is simply an average of an issue's closing prices over a selected time span.
The trend is considered up as long as the price of the issue is above the
moving average line...
MACD
Plays
The most important observation to make on a stock you are considering
for investment is whether it exhibits a tendency to trend. Being able to identify
those stocks will make you much more successful in your investing. It's far
easier to make money in stocks that trend than in stocks that fluctuate up
and down...
Peak
Plays
Nearly all
of the plays we like are short-term plays, but Peaks require that you move
very quickly getting in and out. There are two types of plays with peaks:
the peak itself and the pullback...
PVTM
Plays
The
best indication that a stock will move up is having price and volume increase
together–when they make a tandem move. The Price Volume Tandem Move (PVTM)
is one of our favorite plays because it indicates the stock has great upward
pressure...
Slam
Plays
The Slam screen looks for stocks experiencing a significant drop in price.
Playing Slams requires constant vigilance and quick response time. There are
a number of ways Slams can be played...
Some "Plays" may involve more risks than others. You should weigh these risks before you act. For example, the execution of some "Plays" may involve shorting a stock. Before shorting, consider your risk tolerance. Theoretically a short involves an infinite risk because there is no limit if a stock rises against your short. Transactions costs are another factor to consider, especially in those "Plays" involving small increments. In these "Plays", you need to consider the size of your purchase and your transaction costs to determine whether the potential profit is worth the risk. Also, some "Plays" call for upside limit orders or stop loss orders. Executions of these orders may not be at the set limits because of market conditions or other factors.
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