Author: Jim Hartwell

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Training – Early Day Trade Opportunities

This report shows the best prospects for picking winning stocks for the trade time indicated in the early hours of the stock market trading day, 9:30 AM - 10:00 AM Eastern.  Breaking news can have a negative or positive effect on these early prices so caution should be shown in taking any position this early in the trading day. The scroll bar at the bottom of the page can be used to display additional columns that appear further to the right of the initial display.

1. Strategy Hint

Each column in the watchlist can be sorted ascending or descending based on the preferences of each trader using the watchlist. Look below at the description of what each column in the watchlist means and use the description to determine the ranking and values that your strategy calls for.

2. Columns In The Report

Symbol = ticker symbol for each stock. Double-click to high light the symbol for copy/paste into your trading platform.

Approx. Trade Time = trading minute for each stock. A stock with an earlier 'Trade Time' may give a longer span of time for the stock's price to rise. But stocks with a later 'Trade Time' give time for an initial dip in price to take place before entering a trade position.

Avg Of High = average high price for this stock for this minute on an average trading day. When monitoring the stock market in real time, this price can be used in combination with the prices in the 'Avg Open On The Low End' and 'Avg Of Close On The High End' to find a range indicating the likely direction of the stock's price from this point forward. (Note: When this value is higher than Prev Close then this is a good indicator that price will rise for this stock and its Approx. Trade Time).

Avg Open To AvgHigh Gain% = average price movement from the open at the Approx. Trade Time to the average high price for the day.

Avg Open To Close Gain% = average price movement from the open at the Approx. Trade Time to the average close price.

Rank Dollar Volume = how this stock ranks in dollar volume versus other stocks for this minute  on an average trading day. Dollar volume is the total value of money invested in 'trade(s)' for a stock over a period of time (a minute, an hour, a day). Dollar volume is a good way to equalize the interest shown in a particular stock in comparison to another, since a cheaper stock with higher volume can be seen to have similar interest from the market as a stock with a more expensive price but with less volume.

Rank Of Best Buy Minute = how this minute ranks for this stock  on an average trading day. This rank takes into account what the price of a stock will do after this particular 'Trade Time'.  Stocks with a price that rises after the  'Trade Time' shown on this line for this stock are ranked higher than stocks with prices that either don't rise as much or that fall after this 'Trade Time'.

GoFwd Gain% = part of this stock's trading model - this stock's typical amount of percent change in price from this trading minute going forward in the trading day.

Rank GoFwd Gain% = part of this stock's trading model - where this stock's amount of change in price ranks from this trading minute going forward in the trading day.

GoFwd High Gain% = part of this stock's trading model - this stock's typical max amount of percent change in price from this trading minute going forward in the trading day.

Rank GoFwd High Gain% This Minute = part of this stock's trading model - where this stock's amount of price change ranks from this trading minute going forward in the trading day.

Sector Rank = the rank of this stock's sector.

Prev Close = this stock's closing price on the previous trading day. (Note: Beware when this value is already higher than the Avg Of High).

Prev Gain% = this stock's amount of price change on the previous trading day.

Surge Gain% = the highest gain% for this stock within the last 3 days. If the surge percentage is very high then the price movement for this stock could be well outside of its typical trading range which could be a consideration in evaluating its price moves for the current trading day.

Date of Surge Gain% = the date of the detected surge gain%.

52WK LO = this stock's lowest price in the last 52 weeks.

52WK HI = this stock's highest price in the last 52 weeks.

52WK PRC RANGE = the over all price movement for this stock in the last 52 weeks.

VOLUME SURGE% = the highest volume percentage change difference for this stock within the last 3 days. If the volume surge percentage is very high then the volume movement for this stock could be well outside of its typical range which could be a consideration in evaluating its price moves up or down for the current trading day.

RANKOF VOLUME SURGE% = where this stock's volume surge ranks among all stocks for this trading day.

DATE OF VOLUME SURGE% = date that the current volume surge percentage took place.

% Off 52wk Hi = percentage of gain this stock's previous closing price was below its 52 week high.

% Off 52wk Lo = percentage of gain this stock's previous closing price was above its 52 week low.

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Training – Stocks From #nn Sector & Industry

Each page consists of a watch list of stocks from the industry & sector with the rank that is shown in the title of the page. A strong performing stock can be identified by choosing a highly ranked stock from a highly ranked industry and sector.  You can can sort the stocks by any column in the report just by clicking on the column header.

Columns Descriptions

Symbol = the stock symbol for each stock on the page. Double-click to high light the symbol for copy/paste into your trading platform.

Prev Close = the prior day's closing price

Gain% = the prior day's price gain percentage.

Vol(00s) = volume in hundreds from the prior day.

Todays Stock Rank = the price gain percentage ranking from the prior day. This ranking is against the entire market not just the stocks in this industry and sector.

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Training – Stock Lists For Each Ranked Industry & Sector

This is a page of links to the analytics for each stock in the ranked industry & sectors shown on the page.  There are multiple pages in this series that will have five  links for ranked  industry and sector stock lists per page.

Links On The Page

Stock List - #nn Ranked Sector & Industry

>>Page for #nn  to  #nn = go to the next page of stock lists for ranked industry & sectors. The rankings on the next page will be from #nn to #nn.

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Training – Industry / Sector Analysis

This report shows the performance ranking of each Industry / Sector. The Industry / Sector name, Avg Gain%, and the Sector Rank are displayed for each. You can can sort the stocks by any column in the report just by clicking on the column header.

Column Descriptions

Industry / Sector Name = name of each industry and sector.

Avg Gain% = the average previous close gain percentage for all stocks in the sector.

Sector Rank = the rank of each industry and sector based on price, volume, and other proprietary metrics.

Links

Stocks in each ranked sector above.

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Training – Under Valued Portion of The Market by Industry

This report only shows the Sectors that are over-all under valued.  The Sector name, Count Of Under Valued stocks, and the on average PE ratio remaining for the under valued stocks in the Sector.

Column Descriptions

Industry Name = name of the industry.

Count Of Under Valued Stocks = only the number of stocks that are under valued.

Per Stock Average Earnings Factor Remaining = proprietary factor based on the PE ratio and the previous day's close price compared to the bench mark closing price in the factor for each stock. Some stocks in the industry may have more remaining other stocks may have less remaining. Of course there may be some stocks in the industry that are not under valued at all. The number in this column only pertains to the under valued stocks.

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Training – Under Valued Portion Of The Market By Sector

This report only shows the Sectors that are over all under valued.  The Sector name, Count Of Under Valued stocks, and the on average PE ratio remaining for the under valued stocks in the Sector.

Column Descriptions

Sector Name = name of the sector.

Count Of Under Valued Stocks = only the number of stocks that are under valued.

Per Stock Average Earnings Factor Remaining = proprietary factor based on the PE ratio and the previous day's close price compared to the bench mark closing price in the factor for each stock.  Some stocks in the sector may have more remaining other stocks may have less remaining. Of course there may be some stocks in the sector that are not under valued at all. The number in this column only pertains to the  under valued stocks.

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How Rich Stock Traders Pick Winning Stocks And Make More Money

So You Want To Be A Rich Stock Trader

There are rich stock traders and there are traders who go bust. The difference between the two types is the rich traders pick winning stocks and the busted traders get stuck with too many losers.  If you pick winning stocks you'll make more money, and improve your chances for not going bust.

Of course no one starts trading stocks to lose money. All stock traders see themselves growing wealthy to live a better life and help more people; their family or their fellow man. As mentioned at the beginning to make money in the stock market you (the future rich stock trader) must pick winning stocks. How?

Rich traders generally have an advantage that they capitalize on. They have a system or a service that identifies stocks that meet the criteria for their trading strategy of buy low and sell high. They concentrate only on the specific stocks that trade according to the pattern of their specific strategy.

Strategies For Picking Winning Stocks

The first criteria for a winning stock is that it has to be one that lots of other traders are interested in. Trading volume can be an indicator of this. More importantly the direction of change in volume should be going up.  How do they find stocks that meet this first criteria? Usually successful traders use a service or a stock screener that identifies these stocks for them.

Next a stock with a high amount of interest (increasing volume) needs to have a price that is rising or at least anticipated to rise. There are various trading indicators that will signal this condition, on balance volume (OBV), dollar trading volume, moving average convergence & divergence (MACD) and others. Used in combination all of these indicators can be used to confirm a stocks candidacy for a winning trade.

Somewhat harder to identify is a stock with a good story or good news driving it's price. The reason why its called "news" is because nobody knew it before it was released (supposedly). So a good story is hard to anticipate. But as they say "success" leaves footprints. A stock's fundamentals (how much the company makes and at what cost) is a good way to measure and compare one stock with another to identify emerging good news.

After finding a stock with a high level of investor/trader interest, strong price, a good story then the only thing left to do is determine a good price "entry point" (when to buy) and an "exit point" (when to sell after making a profit).  Rich traders buy when the price is on the way up (buy low) and after  the anticipated rise in price takes place they sell before the price starts to drop (sell high).

Am I Too Late - How Do I Know The Opportunity Hasn't Already Passed?

There are a combination of indicators that can be used to identify stocks that are reaching a "top".  And if the opportunity to capitalize on trading a particular stock has already passed so be it, let it go.  As the price of a targeted stock dips in the future a new opportunity may present itself. There will always be another stock that will give you the opportunity to capitalize on its price move.  Just identify that other stock quickly.

The best way to identify the next winning stock is to use analytics that are applied to the entire market each day. On a daily basis our service generates a watch list of stocks that meet the criteria spoken of in this article in addition to many other proprietary criteria. Membership to our service will give you statistics and analytics for many winning stocks in winning industries and sectors.

Evaluate our stock trading analytics FREE for the first seven days here.

 

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How To Choose A Broker

Choosing a Broker

Whether you are a stock trader or a stock investor you need a stock broker. As you no doubt already know there is a difference between stock trading and stock investing. Investors buy stocks long-term, stock traders buy them short-term. Either way you need someone to execute your stock trades.

Depending on the type of investing that you plan to do, you may need to hire a broker to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell stock on the stock exchange. You may wonder if you really need a broker. The answer is yes. If you intend to buy or sell stocks on the stock exchange, you must have a broker.

Stockbrokers are required to pass two different tests in order to obtain their license. These tests are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree.

It is very important to understand the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. A stock broker is only there to follow your instructions to either buy or sell stock… not to analyze stocks.

Brokers earn their money from commissions on sales in most cases. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat ‘per transaction’ fee.

There are two types of brokers: Full service brokers and discount brokers. Full service brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.

Discount brokers typically do not offer any advice and do no research – they just do as you ask them to do, without all of the bells and whistles.

So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.

If you are new to investing, you may need to go with a full service broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount broker to make your trades for you.

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Why Does Technical Analysis Work?

The Psychology Behind Technical Trading

Markets are based on willing sellers interacting with willing buyers. The seller  offers something of value and  the buyer is willing to give up something of equal value to obtain what the seller is offering. In the stock market the value placed on stocks (the thing offered between sellers and buyers) is based on the beliefs, needs, and wants of the seller versus the beliefs, needs, and wants of the buyer. The price of stocks fluctuate because the beliefs of buyers and sellers differ at any point in time and at any given price of a stock.

Beliefs

Sellers of a stock usually believe the price of the stock will soon drop so they want to sell and take profits or minimize further loss. Buyers believe that a stock price is going to rise so they are willing to buy at the current price with hopes that their belief is true.  Sometimes the beliefs of buyers and sellers can be the same but their time horizons can be different. For instance in the long-term both buyer and seller may believe the price of a stock will rise, but the seller may not have the desire to wait long-term so he or she sells to the buyer that is willing to wait.

Technical Analysis Can Identify Sentiment And Thus Price Movement

Time, price, and volume used in combination are the key metrics that most indicators are based on to calculate whether it is fear or greed that drives the market, or a particular stock, at any given time.  We won't discuss any specific indicator here except to say that even when trading stocks based on their fundamentals (expected earnings, etc) technical indicators are a good way to identify how fast or slow the price will move to meet the expectations based on the fundamentals.

The technical indicators used to produce the watch lists on this site are calculated daily at the end-of-day when all price and volume for every stock is definitively known.  With our watch lists in hand at the beginning of the trading day our members can develop a trading plan that can help them compete with the high frequency trading programs in finding and executing profitable trades..

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The Case For Online Trading

About Online Trading

The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!

We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.

A Word Of Caution

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.

You should also be aware that you need to have a "computer" with Internet access attached to you - your smart phone. You want to always have the ability to get online to make a trade. If necessary you need to be sure that you can call and speak with a broker if your internet connectivity is compromised. This is true whether you are an advanced trader or a beginner.

It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.

Bottom Line

Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!