1. Watch the Moving AveragesA moving average is the average price of a stock over a specific period of time. The most common time frames are 15, 20, 30, 50, 100 and 200 days. The overall idea is to show whether a stock is trending upward or downward. Generally, a good candidate will have an increasing moving average that is sloping upward. If you are looking for a good short, you want to find an area where the moving average is flattening out or declining.
2. This strategy utilizes the Post-Earnings-Announcement-Drift phenomenon (PEAD). We also incorporate the technique of buying stocks with recent upgraded earnings for the next fiscal year.
3. We also sell if quarterly earnings are reported without a large surprise, if the stock begins to significantly underperform the market, or if earnings forecasts don’t stay strong.
4. Get a Sense of Market TrendsIf the trend is negative, you might consider shorting and do very little buying. If the trend is positive, you may want to consider buying with very little shorting.
5. Trade opening tendencies. There are some trades around the open that work pretty well. Indexes tend to be “wrong” and reverse early on, gaps tend to close (except when they don’t), and the opening range breakout idea is legendary.
6. Fade moves:
You can be a trader who sits watching for news in a stock, and then looks to trade around the overreactions.
7. At the end of a trend, there is usually some price volatility as the new trend tries to establish itself. Swing traders buy or sell as that price volatility sets in.
2. This strategy utilizes the Post-Earnings-Announcement-Drift phenomenon (PEAD). We also incorporate the technique of buying stocks with recent upgraded earnings for the next fiscal year.
3. We also sell if quarterly earnings are reported without a large surprise, if the stock begins to significantly underperform the market, or if earnings forecasts don’t stay strong.
4. Get a Sense of Market TrendsIf the trend is negative, you might consider shorting and do very little buying. If the trend is positive, you may want to consider buying with very little shorting.
5. Trade opening tendencies. There are some trades around the open that work pretty well. Indexes tend to be “wrong” and reverse early on, gaps tend to close (except when they don’t), and the opening range breakout idea is legendary.
6. Fade moves:
You can be a trader who sits watching for news in a stock, and then looks to trade around the overreactions.
7. At the end of a trend, there is usually some price volatility as the new trend tries to establish itself. Swing traders buy or sell as that price volatility sets in.
