I am trying to get into swing trading, and want to know some tips on what to look for, stocks that move in somewhat predictable cycles, are there seasonal cycles for certain stocks in certain sectors, etc.
I tried the penny stock stuff for a while, and it is not my game. I'm trying to get into stocks that I can swing trade for 20-50% gains on a semi-predictable cycles. I know it is alot to ask for, but any information, tips, and insights would be greatly appreciated.
Thank you all in advance for any help.
DrZ
Posted by bb money on :
One example of a seasonal stock is ONT R1 Man brought this up in his picks forum. It runs around the 2nd week of January the past three years. Do some research I am sure you will be able to find many more like this.
Posted by fourseven on :
Doctor Z,
What time frame are you looking at? Some people trade 3-5 day swings, some trade 6-9 month swings. Depends what your game is, I guess.
From my limited experience with this, a good strategy would be to find a stock that has a broad trading range (at least 10%), or is trending up in a zig-zag fashion. Wait for a swing bottom and once confirmed, open a long position. Close the position once the price reaches the top of the range (or the upper trend line).
Mind you, this is a very, very rough recipe. No warranty implied Posted by EsotericRule on :
DocZ...
Just took a look at ONT. From a purely technical standpoint she's looking good...and edging into place to benefit from good news.
As for swings, I trade the weekly charts only and can wait as long as the technicals hold up for my targets to be hit (or not). Penny's or mainstream the issues are still the same, the only problem with pennies can be liquidity (get greedy, get stuck).
Do you use technical analysis? And more importantly...are you good at using it?
Posted by EsotericRule on :
Oh...one other thing. There are no 'predictable' patterns. Just as soon as you think you've found one...it changes. :~)
I believe this will soon be the issue with ONT.
Posted by amanick on :
best thing to do is play on stocks that drop drastically after you look at there financial. Most go up in a few days.GBRC, Cort, RONC, APT, abd CBRX are all worth the swings of you time it right. So you know I am in all of these for long term and swings depending on the amount of swings.GBRC has some great swings but be very careful with it cause it will drop drastically if not paying attention to it.
Posted by amanick on :
BTW CORT had a good swing today I made 700 off it.Keep an eye put it may drop again .
Posted by DrZ on :
Thank you for all your imput. I'm reading all the posts, and looking for patterns in the companies you have mentioned. I've looked at ALMI and have noticed that zig-zag pattern swing traders are looking for. ALMI also seems to go up about 50% or so a year for long term holds. Again, thank you, and all the best.
happy trading, DrZ
Posted by DrZ on :
EsotericRule,
I am still learning the fundamentals of technical analysis. I look at RSI vlaues, bollinger bands and full stochastics for trends. I'm not good at TA, but trying to learn as much as possible. Thank you for all your imput.
Cheers, DrZ
Posted by Ramius on :
I'm no pro...have only experimented with swings. I've played on paper and done pretty good.
I go to MSN money daily and look at the "top 10 losers" for the day, and then watch those over the next few days. Many times the market has a knee jerk reaction to slighly negative news, and then recovers. I've found that more than half start to move up within days of the big drop.
Often a company that missed earnings slightly will drop huge, and then in the days to follow it will correct. The company I work for missed earnings by 3 cents a share last quarter, but the stock dropped 11% the next day. I bought some a few days later and the price had fully recovered in within 45 days.
good luck
Posted by DrZ on :
Ramius,
Thanks for the tip - I'll have to check out what the big losers have been for the past two weeks with the DOW losing over 700 points since February.
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