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On a serious note, one way that I do trade is by monitoring stocks that have had big volume change. I don't trade them immediately unless they are definitely on the move. What I like to see is 2-5 days of consolidation to make sure the price increase is sustainable, once it has established a base I enter a trade after a couple of self written indicators pin point the entry. Works like a charm so far. In addition I never risk more than 0.5% of my account on any one position and figure out how much shares to buy based on the setup and this limitation.
Another way that I have recently started trading which seems to be working very well is to monitor stock that have recently gone south but their financials are still intact. Once their volatility decreases I wait until it is ready to move again and setup a 2-1 quasi-straddle with options in the way that I believe is going to move. Great examples of this are ERS and MDTL. This afternoon my setup triggered midafternoon on ERS so I have 10 ITM calls and 5 OTM Puts. I use tradestation for the automatic entering of orders once my indicators go +. MDTL has not triggered but could trigger tomorrow.
My stop losses are based on a variant of ATR + pivots and I update them every day. I always exit out of positions through stop losses triggering, which is great since once I enter a position it requires little maintenance.
Still learning though but so far these two methods among others have proven winners, even on this crappy market. Can’t stress how important money management is, if you learn how to do this you can trade high volatility stocks like any other. Good luck.
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