Wednesday, March 29, 2017

How to choose your stock and how to play it

Choosing a stock is just like choosing the one who will be with you until you grow old. Choose wisely choose the best. Choose the one that will make your heart race the fastest. In stocks choose the fastest horse.

There are several strategies we can choose from in choosing a stock.

1. Ticker. This is where I check which stocks are in demand and which stocks are active on that day. I use col check for the first 15-30 minutes trade. List the stocks that are unusual and isn't heard of. After that I look for the charts on my list. You can check where the stock is coming from. If this is an illiquid stock and is on a squeeze in a bollinger then you will say that someone is accumulating it. You can either accumulate at the lows or buy the support.



The rectangle part is an example of a squeezed bollinger. And the one with the arrow points out that the price is already outside the middle band. When it's outside then that means it is a start of an uptrend. Accumulate on the lows and on the dips to gain a good return on investment. This stock is more of a longer hold and needs patience is a virtue.

You can also ride on the momentum of this stock if you are a scalper or daytrader. How? You can check how fast these stocks is on the ticker how fast they are being bought, how many shares are being bought, how fast the price moves then it means this stock is on demand and is currently on momentum. Check if its near the low or if you are using heikin ashi for 1 minute then you can ride and throw fast once the heiken ashi for 1 minute turned red. Move faster cause after that the selling will become fast. Whatever type of trader you are you can profit from this kind of move if you know how to enter and exit.

Another type of play for this once are slow moving. Like MJC once you see it that someone is accumulating at the lows don't wait buy the ask cause no one will sell it to you at a discounted price especially for a huge gap play on the prices between bid and ask.

How will you know if it's for the long term or quickie? First you need to check the fundamentals. Is the stock undervalued? Yes. Long term. How about LMG that one is super overvalued what makes the price go up? The other one is there an existing gossip? If the answer is yes then it is also for long term until the stock hasn't release the news yet.

Based on my experiences these are the stocks which has gossip on it and went up in a great way.


APL a gossip that has been spread that this is a possible backdoor. Been halted then after that the news spread that JVDC confirmed that it will be their backdoor. What happened it opened at the highs and the usual sell the news happened. Now this stock is now at the lows too bad for those who bought the news though they are now stuck with a paper on their hands.


DAVIN the backdoor of Wendy's. Although the news of this one hasn't been confirmed yet then does that mean that DAVIN will still have a long way to go? Let's check where the pullback will lead us.

Why does other well-known companies buy these small companies? What is the reason for their buy back? The companies do this to avoid the hassle of IPO's. Buying a cheaper price company will save them lots of cost and effort for a cheaper price and voila they are now a PSE listed company on just a matter of some few bucks!

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