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Post by JHam on Aug 3, 2020 9:10:39 GMT
Just wanted to start a place for people to post about general trading strategies - indicators, brokerage platforms, resources, new techniques, etc. I'll post some thoughts later. Old thread, but just for fun: my trading strategy is to buy rising microcap stocks at the point from which they are most likely to rise the most the fastest. It sounds obvious (duh): who doesn't want to buy stocks where they will likely rise the most? But there's a pretty simple trick to massively reducing risk in microcaps, which is using the WMA10 as an entry point. Take a look for example at a weekly chart of AERO with a WMA10 indicator. Same pattern with EMAN, GLGI, TOMZ, KOPN, POWW, KTCC...A rising (above WMA10) stock bounces off WMA10, then coasts into it, then bounces again... CPSH closed right on WMA10 this week. I just bought back into it after selling the froth, and it will make a good test. It's also why I bought CPAH where I did, and will sell next week if we don't bounce from here. Buy a rising stock when it lands near WMA10. If it bounces, you're golden. If it doesn't (as of the next week's close), sell and move on. You don't have to hit the line perfectly. But watching that line gives you a low-risk target on any rising stock and helps you ignore (or better, sell into) the hype. It will provide an anchor for your emotions. Wait with a handful of cash near the WMA10. If your stock truly loves you back, it will meet you there. Then it will take you higher. I should probably pay more attention to technicals like SMAs, WMAs, and follow charts better, but my mind is too simple for that. Instead my focus is more value and events driven. If a company has a good capital structure, undervalued, with major milestones/partnerships on the horizon, then I am OK with buying and holding for a bit. CPAH fit that bill for me and I have been trading since $.90, and it is still my largest position. It's probably not the best strategy, but due to my job, lifestyle, and area of the world I live in, I can't always follow my stocks as diligently as I need to (except right now during the pandemic, ironically), so this style works for me.
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Post by captsmith77 on Sept 29, 2020 7:53:56 GMT
I honestly thought that I was "good" at trading stocks years ago. Then I lost everything, and didn't have a dollar to my name, nearly maxed out credit cards, had a car loan to pay off, rent to pay and no job, meaning I had to borrow just to get by. It was a wakeup call, but I didn't give up on stock trading. In fact, when I got my old job back working nights, I spent the next two years making the same dumb mistakes.
I was never going to make money trading penny stocks, or companies nobody heard of, and when I FINALLY looked at ALL of my trades over the years, it was exactly what I needed to see. It was the penny stock winners that led me to keep showing up at the casino to lose more and in bigger amounts, and I realized it didn't work. I started trading real companies (mostly with billions in market cap) that made real profits, and passed on any microcaps with the exception of one small company I've followed for years. No longer would I throw all of my eggs into one basket either as I'm sure I did back then from time to time, and I rarely ever mess with biotechs.
The last four years have been an outstanding success, including 2020 which has been an interesting year to say the least, and I can see why that is by looking at all of my trades lined up in the green and red and seeing where the successes and failures are, and where my strengths and weaknesses lie. I think each of us trades differently, but for the first time ever, starting early last year I came up with an actual trade based goal, which is based on trading volume and percentage of profit.
My end goal is to move 50 million dollars in a calendar year and make 0.5% - 2.0% profit on that. Even a 1% profit is 500K... not bad.
Right now I'm closing in on the 2.0M mark, and hoping to push closer to 3.0M with an end of the year surge in volume, making s small percentage off that figure. Profits for the year have already matched or exceeded expectations, especially given the circumstances of Covid and the massive moves made in the markets early on. If I do manage to push the 3.0M mark, I may try for 10.0M next year.
As successful as my trades have gone this year as well as the last three, my greatest achievement was wiping out all remaining debts on April 6th of this year after working diligently to pay them off over time.
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Post by selluwud on Sept 29, 2020 12:35:51 GMT
I honestly thought that I was "good" at trading stocks years ago. Then I lost everything, and didn't have a dollar to my name, nearly maxed out credit cards, had a car loan to pay off, rent to pay and no job, meaning I had to borrow just to get by. It was a wakeup call, but I didn't give up on stock trading. In fact, when I got my old job back working nights, I spent the next two years making the same dumb mistakes. I was never going to make money trading penny stocks, or companies nobody heard of, and when I FINALLY looked at ALL of my trades over the years, it was exactly what I needed to see. It was the penny stock winners that led me to keep showing up at the casino to lose more and in bigger amounts, and I realized it didn't work. I started trading real companies (mostly with billions in market cap) that made real profits, and passed on any microcaps with the exception of one small company I've followed for years. No longer would I throw all of my eggs into one basket either as I'm sure I did back then from time to time, and I rarely ever mess with biotechs. The last four years have been an outstanding success, including 2020 which has been an interesting year to say the least, and I can see why that is by looking at all of my trades lined up in the green and red and seeing where the successes and failures are, and where my strengths and weaknesses lie. I think each of us trades differently, but for the first time ever, starting early last year I came up with an actual trade based goal, which is based on trading volume and percentage of profit. My end goal is to move 50 million dollars in a calendar year and make 0.5% - 2.0% profit on that. Even a 1% profit is 500K... not bad. Right now I'm closing in on the 2.0M mark, and hoping to push closer to 3.0M with an end of the year surge in volume, making s small percentage off that figure. Profits for the year have already matched or exceeded expectations, especially given the circumstances of Covid and the massive moves made in the markets early on. If I do manage to push the 3.0M mark, I may try for 10.0M next year. As successful as my trades have gone this year as well as the last three, my greatest achievement was wiping out all remaining debts on April 6th of this year after working diligently to pay them off over time. I remember you from the old ACTC days Capt'n, I hope you didn't lose too much there or at least broke even which is where I ended up. Congrats on your new found direction and best of luck achieving your goals.
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Post by captsmith77 on Sept 30, 2020 6:29:28 GMT
Hi Sell,
I haven't been on here much of late because I rarely mess with biotechs of any size, though I do stop in on occasion. Those of us that followed ACTC for the length of time that we did, we really are a kind of family, and even though I made a little money on it back then, the friendships were worth more to me in the end.
I just read where a company is looking at filing an IPO within the next six months to a year where they hope that one of their ideas works for life extension. It kind of reminded me of a very early stage ACTC, and IIRC I believe they're working with stem cells on some level.
Always enjoyed the conversations with you all, though holding ACTC when I did at times led to some sleepless nights and miserable days at work as I held too much of it and had too high of expectations.
ACTC wasn't what ruined things for me though from a financial standpoint. I put money into some of the worst penny stock trash companies you can imagine, especially the marijuana ones, and lost big. Martha Stewart Essentials vitamins? Yeah I would put a lot of money into that crap. Hahaha. I deserved what I got in the end, and even though it may sound crazy, losing all of my money and having to start over was the best thing that could have happened to me.
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