Posted by: eminitrader April 9, 2007
Making Money with Eminitrader
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Bricolage, Samsara, Latoboy: Thanks for the kind words. I'm glad that you guys are finding this thread useful. Usually I do not trade much during summer but I do keep an eye on the market. Unless something unusual happens, I usually stay on the sidelines. If i trade, it will be futures only, just because you get more bang for the buck. I will post here if I see something unusual. Samsara: I don't know how to define my analysis. It is not fundamental in the sense that I do not analyze individual company's balance sheet. If i have to define it, it is more of a macro-trend analysis and I use technicals to filter the trades, but in order to initiate trade I use price-action. I have tested almost all the technical indicators that are commonly available and the results have been okay. For example: Macro-trend analysis says that we are in an uptrend, so I look for oversold stocks, but in order to go long the price itself has to trade above the 1st half hour high. Last week I mentioned a list of stocks that were oversold, had we bought those all we would have lost money. The only stock that acted right i.e. price traded above the half-hour high was SIGA and it has been going up. It was up 7% today. GROW was another one that I had recommended few weeks ago. Other thing that do is look for the times when prices diverge with general consensus. When things look really good and everyone is expecting the market to go up but price does not go up, I usually take the opposite side and vice versa. I have come up with a set of rules that have worked in the past. For example, if X and Y happens Z would occur within certain time. After the time passes, if Z does not happen, I will take my loss and loo for another opportunity. Anyway, the price target on SIGA is $7.25. If you are in it, stay tight, if you are already not in it DO NOT chase it.
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