Daytrading a Winning Stock and Recognizing a Loser

June 8, 2017-12:41 am traderscott Markets-Economics 0

The Entry Points

Recognizing a stock or a market which offers a very low probability of a winning trade is just as important as recognizing a situation with a high probability of a winning trade. Another reason why it’s so important to develop an arsenal of “trading patterns”. Trading patterns are not chart patterns. I don’t care about chart patterns, but trading patterns are fantastic tools. The three stocks looked at in the videos are – DRWI, RNN, and CYTR. DRWI was a winning stock, at least for today. It had a great reaction to good news about a contract. And contract news is on my list of bullish, momentum news, as long as the reaction to it is also positive. It then sets up high probability reaction buys, like today’s action. However RNN was a total loser and I was totally avoiding even wasting time with it, except for educational purposes. RNN had news about shareholder dilution – lousy news and a lousy reaction to lousy news = avoid buys. Finally CYTR was used as a model as to what could potentially set up a good buy in RNN.

 

 

mm
About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

Be the first to comment

Leave a Reply