Saturday, March 18, 2017

Ticker Analysis

Ticker Analysis is used so that we will know the stocks that are in demand and the stocks that are being sold in the market. It is the way the market tells us if we are right with our researches and studies. Even if your fundamental analysis or your technical analysis is superb if the market doesn't agree with you then you might not profit from all of your analysis. This is our final confirmation to get our timing right.

Ticker analysis plays an important part in a traders' lives. We can see here how fast buyers buy a certain stock. What brokers buy the stock. How many quantity do they buy. How fast the transaction occurs. The direction the stock moves. If a stock is being bought out fast you can check what is the low of the stock for the day if it is still near the lows then you can buy it. The key is when a stock is being bought consecutively and is fast in nature purchase it on the ask side especially when its near the low for the day. Especially if that stock is one of the downtrend and suddenly bounced it is a chance for a dead cat bounce. One example I have with this is APX saw it moving fast at 1.81 and the price is getting higher and higher that I was able to purchase it at 1.9. It got a strong close at 2 and sold it in the morning at 2.19 it still went high up to 2.3 but it's still okay cause I followed my plan to sell in the morning. Another one is CHP bought at 8.3 sold on that day at 8.44.

Ticker plays can also be use to catch possible ceiling plays. When an unfamiliar stock comes out and it suddenly moves fast and you have seen that it is still low then go buy the asking price. No one will sell it to you at a bargain cause it is a long sleeping stock already. I was able to catch MJC on this one saw someone bought it at 2.05 too bad I think for so long and didn't buy 2.10 after someone bought it the price is now seen at 2.36 and I bought that one. The movement is so fast even the selling is fast on this one so you better act fast and don't be too greedy on this kind of plays. I got ipit on this because of my greed so that's one lesson learned for me. Good thing it still went up the 2nd time and I was able to sell it with a profit. It's better if you buy this type of stocks with just the minimum risk or just boardlots.

Ticker analysis can also show you unusual buying transactions with sleeping stocks. You can see if someone is accumulating something. List that stock check the charts. Check how it moves the past few days. Check the brokers buying on the previous days. Although the waiting for this kind of stocks are too long if you can wait for it then the possible return is also good. But just put a minimum amount for this kind of plays cause you don't want your money to be sleeping for too long. You can add up once more if this stocks have already move.

You can watch your ticker for the first 15-30 minutes. If you can't see anything then don't force yourself to trade. There will always be another day and another opportunity. Don't stare at your ticker too much after all the only important time in the market is the first 15 minutes the last 15 minutes before break and the last 15 minutes of the trading day. The rest are all noise.

No comments:

Post a Comment