These tips come from Michael Goode's Webinars, Mark Croock's Video Lessons and Webinar, Tim Sykes' Lessons and Webinars and Level 2 DVD.
1. When a stock is a big % gainer from the day before, you gotta keep watching it, cause it may spike more.
2. Dip buying reduces your risk.
3. Friday is single riskiest day for shorting.
4. On previous day's spikes look what the high was, cause that is the key breakout level for today.
5. Morning spikes is the single best way to profit RIGHT NOW. Best time to trade - buy morning spikes, short failed morning spikes.
6. Short selling morning spikes is not a good strategy for people with small accounts. If the stock goes against you, you can't add to your position.
7. If the plan is not good, you shouldn't do the trade in the beginning.
8. Have a plan on when to get out. "I am gonna hold no matter what" is not a good plan.
9. Just because a stock is in bankruptcy, it doesn't mean you have to short it. It can have post bankruptcy spikes.
10. You don't trade anything just because you want to trade it, you gotta wait for the right time.
11. Level 2 is telling you how a stock is going to move the next 2 min in the best case scenario.
12. Level 2 is what you use once you've identified a proper chart point for an entry. And then you see Level 2 line up the way you like it. This gives you a little bit of extra chance that a trade goes your way.
13. When you get a report of a biotech saying that they report data - means it's negative. Report positive data, or similar positive statement in the headline would mean opposite - good news.
14. VWAP shows how much people paid for a stock on average. When current price is below VWAP, means on average those people who bought a stock are not making money.
15. On developmental stage biotech company earnings don't matter that much, cause there's no business.
16. You don't want to buy a stock that is way below an opening price.
17. When you declare bankruptcy that's because you couldn't pay your debts. Most of the time bankruptcy is filed not to liquidate the company, but to keep the business running.
18. During bankruptcy you cancel old shares of stock and issue new.
19. Don't short right at the dead bottom, you gotta gibe yourself some cushion.
20. Do not put in stop orders, they can be seen by market makers and you might get executed at the wrong moment.
21. Don't make monetary goals.
22. When on Level 2 you see an order showing 100-200-500 shares, then you see on times and sales orders executed at this price, but that order on Level 2 is still there, means there are some hidden buyers/sellers that have huge or just big orders in.
23. There's no reason to chase an illiquid stock.
24. Don't trade choppy daily charts.
25. When stocks break key pivot points, they surge.
26. Use Level 2 in conjunction with a chart, cause there is too much manipulation going on.
27. Buying overextended charts is dangerous. You don't know where it stops.
28. If a stock is finally breaking resistance after trying multiple times, it will probably spike.
29. The longer a little breakout holds its new level, the more people on message boards get exited, the more short sellers become scared, the bigger the chance of it spiking more.
30. When on a slow breakout you get multiple buyers on each price level on Level 2 at the bid, it's a good sign, means stock has support. It should have no problem holding above resistance.
31. Don't buy a stock when a wall of buyers has failed.
32. If the sellers look like they have momentum and there's a lot of big size on the ask, and the buyers are holding steady on a certain price for a few minutes, but the size on the sellers won't quit and the bid is weakening, then you want to short. You want to piggy back the move.
33. Level 2 in the morning is more choppy than in the afternoon.
@Spot Yes, you pay to get in and to get out, and if you want to add to your position, you will pay again. You're paying for each executed order.
@Spot Yeah, they aren't the cheapest on executions and they don't have short shares a lot of the time. Personally, I think their charting and scans are pretty high quality what with being free and all. Then again that kinda of thing is mostly preference. :p
Thanks @nastya @PennyStocksAF
thanks for giving us these posts, very helpful. thanks again. keep it up!
Join now or log in to leave a comment