I’m a big believer that stocks move in short-term bursts. Small capitalization (small floats) stocks could easily move 5-20% in 3-5 days, possibly even more, depending on market conditions. Large capitalization stocks move in dollar terms, $5-10 at a clip.
What is swing trading, what is momentum burst? No one has a better answer than Stockbee. Very simply, it is a structural phenomenon that has existed for a long time, stocks can move in the short term without an identifiable catalyst.
$ZYNE a stock we highlighted on 11/2/17 fits the bill.
The stock made a 100% on 9/28 on the back of some positive phase 2 results.
It then traded sideways for 23-days before we flagged it.
After our buy-stop was triggered it went on to move 30% on no news.
They don’t all work like this, like every other strategy you are going to be wrong half the time, money management is key, and position size will make all the difference in the world.
Identifying the stock at the right time is only the first step, the most important steps are position size and management of losers and winners. But if you understand the math you can make swing trading work within a passive portfolio.
The best way to find the best short-term momentum candidates is to look at the top 300-400 best-performing stocks year to date, I explain more in the video below.
We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills. If this is something you can relate to, then this blog is for you.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.