Came across a really
interesting post from Chad Maue, which refers to a Swing Trader System posted
here:
Quote:
I want to select a balance between stocks which will have large moves over a short period of time (money velocity) with security and risk reduction. To gain security, I start by selecting stocks with outperform the majority of their peers, are relatively liquid, and are priced "right" (not penny stocks, but not much higher than the majority of S&P stocks). To make sure they can move, I find stocks that have stocks with a relatively low float so that when buyers come in, price moves a lot in response.
As a further measure, after selecting stocks with these criteria, I check to see if the stock has had five cycles where it appreciated a minimum of 20% over six days over the last six months. This gives stocks a certain predictability and reliability. The goal is to take my money from one stock which has completed its rapid appreciation and put it back into another stock which has just begun its appreciation period.
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Sounds like something of a gamble - but then again, what isn't in the markets?
10-17-2006, 10:11 PM
Swing trading system
