New Stock Screen
By admin on Mar 28, 2009 in stock trading
I’m testing out a new stock screen (via the Advanced Analyzer I have access to as a TD Ameritrade member.) I won’t be moving on any of these stocks as my trades aren’t yet settled and I don’t currently have access to any funds to work with. In fact since I’m planning on moving from Sharebuilder to TD Ameritrade this week, I probably won’t be making any trades until next week. This week is about building a strategy, next week I plan on putting it into action.
The new stock screen I created today would have me considering the following stocks for purchase on Monday:
HLCS - $0.61
ILE - $0.17
PATK - $0.40
RAMS - $0.48
TEC - $0.41
I’ll be watching these stock closely…
These are doing poorly out of the gate (although so are most stocks today…) I think I need a better volume screen. I need more volume to feel comfortable.
admin | Mar 30, 2009 | Reply
The stocks I did really well with over the last few weeks have been higher volume stocks than these.
admin | Mar 30, 2009 | Reply
Today’s Results:
HLCS: -3%
ILE: +15%
PATK: +18%
RAMS: -12%
TEC: -5%
I think I made a mistake by not including a volume screen. Looking closer at these stocks I wouldn’t really want to be involved with them. While PATK’s 18% gain may look impressive when you see the low volume you see how easily that gain could have been manipulated. It’d be easy to get in and not be able to get back out (without a huge loss.)
My new rule is that a stock must have a volume of at least 1 million for me to get involved.
admin | Mar 30, 2009 | Reply
Today’s action on these stocks has confirmed my belief that a volume screen is essential. These are crap stocks.
admin | Mar 31, 2009 | Reply