StockFetcher Forums · Filter Exchange · Words of advice on Short Term Trading<< >>Post Follow-up
marine2
897 posts
msg #151300
Ignore marine2
3/19/2020 3:26:55 PM

The “when” question to get out of a short term trade is to sell after a price decline of 2%. Most times than not when the stock reverses downward it usually goes past that 2% for the decline in process. You gambled on it moving upward and it didn’t respond the way your filter was telling you. Now with the general market you could go to a larger decline % maybe 5% to 7% realizing the market needs to rest briefly before making its way upward again.

With this crisis and how high our markets were any ways the 5% to 7% decline should have been everyone’s warning to lighten their load out of equities. Learning with time invested is the greatest investing tool you can have.

Just saying.


Cheese
642 posts
msg #151302
Ignore Cheese
3/19/2020 3:49:59 PM

marine2 3/19/2020 3:25:24 PM

The “when” question to get out of a short term trade is to sell after a price decline of 2%. Most times than not when the stock reverses downward it usually goes past that 2% for the decline in process. You gambled on it moving upward and it didn’t respond the way your filter was telling you. Now with the general market you could go to a larger decline % maybe 5% to 7% realizing the market needs to rest briefly before making its way upward again.

With this crisis and how high our markets were any ways the 5% to 7% decline should have been everyone’s warning to lighten their load out of equities. Learning with time invested is the greatest investing tool you can have.
==================================================================================


Excellent rules and risk management.
I've seen some pros emphasing these rules, too,
Thank you very much, marine2.


for individual stocks: out when down >=2%
for markets: out when down >=5%


What rules do you suggest for getting back in ?



marine2
897 posts
msg #151310
Ignore marine2
modified
3/19/2020 10:49:06 PM

Well for me, I have a few really nice filters that work for me in getting alerted to considering a company, or an index to buy into. My interpretation / filter in finding the right equity might not be the way, the filter for someone else.

I am a trend buyer, from the initial beginning of a trend or in the middle of one. Initially in finding companies to pick from are by using screens via Fidelity’s filters, and AAII’s (American Association of Individual Investors). In these two I screen for strong financial balance sheets, with low to no debt. I also like companies with growth the last two quarters.

Assuming you are “long” on finding a stock to trade, I then put these companies stock symbols into a StockFetcher “Watch List”. Then I add the Watch List (WL#’s) into my StockFetcher filter(s). In the StockFetcher filter I am looking for companies with an MA(300) moving upward but optionable. I stay with a price over $5. Adding to this is, watching the Weekly Macd(12,26,9) Slow and Fast lines in their behavior and their relationship to each other means a lot to me. The Weekly Macd is your trend makeup. That old saying, “let the trend be your friend” holds true. Note: Never pick anything shortly after the Weekly Macd Fast Line is crossing below the Slow Line. Then use the weekly Slow Stochastic(5.5) %K and the Weekly Slow Stochastic(5,5) %D for a trigger. How low the Weekly Slow Stochastic(5,5) %K should be before it crosses above %D is up to you. Myself I like it below 65.

But, I have a few other filters that are reliable too. The way I look at it is, if you win 75% of the time you are doing well. Never be upset if you miss a pick every so often. Note: I do not have the “advanced” version to our filter creation. I never needed it.

marine2
897 posts
msg #151312
Ignore marine2
3/19/2020 10:58:53 PM

Now about when to get back in these troubling days is when I use logic instead of filters. Meaning, when kids get back to school, when workers are at their workplace in a normal fashion, when your sports teams are playing before crowds again, and stores and malls are not closed. Once this virus has been controlled and the numbers of people getting this virus is going down and the recovery % is improving. All this has to happen before I feel safe enough to jump back in and play the game again.

marine2
897 posts
msg #151313
Ignore marine2
3/19/2020 11:05:02 PM

Lastly, I remember reading, studying the IBD (Investor’s Business Daily) and they liked you to get out of a stock when it dipped 8%-10% years ago. Ha, I tried that and lost too much before it wanted to make its comeback. So, I just shortened the window a bit. And it worked for me.

Cheese
642 posts
msg #151323
Ignore Cheese
modified
3/20/2020 11:00:26 AM


https://www.stockfetcher.com/forums/Filter-Exchange/Words-of-advice-on-Short-Term-Trading/151300/99999

marine2 modified 3/19/2020 10:49:06 PM

Well for me, I have a few really nice filters that work for me in getting alerted to considering a company, or an index to buy into. My interpretation / filter in finding the right equity might not be the way, the filter for someone else.

I am a trend buyer, from the initial beginning of a trend or in the middle of one. Initially in finding companies to pick from are by using screens via Fidelity’s filters, and AAII’s (American Association of Individual Investors). In these two I screen for strong financial balance sheets, with low to no debt. I also like companies with growth the last two quarters.

Assuming you are “long” on finding a stock to trade, I then put these companies stock symbols into a StockFetcher “Watch List”. Then I add the Watch List (WL#’s) into my StockFetcher filter(s). In the StockFetcher filter I am looking for companies with an MA(300) moving upward but optionable. I stay with a price over $5. Adding to this is, watching the Weekly Macd(12,26,9) Slow and Fast lines in their behavior and their relationship to each other means a lot to me. The Weekly Macd is your trend makeup. That old saying, “let the trend be your friend” holds true. Note: Never pick anything shortly after the Weekly Macd Fast Line is crossing below the Slow Line. Then use the weekly Slow Stochastic(5.5) %K and the Weekly Slow Stochastic(5,5) %D for a trigger. How low the Weekly Slow Stochastic(5,5) %K should be before it crosses above %D is up to you. Myself I like it below 65.

But, I have a few other filters that are reliable too. The way I look at it is, if you win 75% of the time you are doing well. Never be upset if you miss a pick every so often. Note: I do not have the “advanced” version to our filter creation. I never needed it.

marine2 3/19/2020 10:58:53 PM

Now about when to get back in these troubling days is when I use logic instead of filters. Meaning, when kids get back to school, when workers are at their workplace in a normal fashion, when your sports teams are playing before crowds again, and stores and malls are not closed. Once this virus has been controlled and the numbers of people getting this virus is going down and the recovery % is improving. All this has to happen before I feel safe enough to jump back in and play the game again.

===============================================================================

Thank you, marine2 !
Your info is very important. so I'm quoting you here for easier reference in the future.

Would you be watching Teva, Mylan, Gilead, Sanofi and Bayer in the fights against covid-19?


marine2
897 posts
msg #151327
Ignore marine2
3/20/2020 1:19:01 PM

Cheese, if one still wants to play the game of trading yes, those companies you mention are worth a look. Any company that are helping people through this virus environment would be excellent candidates for possibly buying into. Look at what they make, look at their price actions via a chart, look at their financials, then test them against your favorite filters just to see if they “light” up. No stone left unturned as far as making money in a crisis. We are not bad people if we can make money off companies that are vitally needed in this war against this invisible foe. Good luck in your investing endeavors.

Cheese
642 posts
msg #151329
Ignore Cheese
3/20/2020 1:32:52 PM

Thank you, marine2

StockFetcher Forums · Filter Exchange · Words of advice on Short Term Trading<< >>Post Follow-up

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