This is exactly what I like to see for my strategy . We have a break out of a base into all time highs along , decent volume and a longer term base. Also high institutional ownership at 77.8% and price tag over $100 are extra points that put this as one of the top buys on my list.
I have been having growing success playing stuff that has not pulled back yet on daily as day trades where I pay myself earlier on and try to hold a core position. As I have become more consistent with my day trading, that is one way I like to initially enter these stronger runners . The second is a pullback but followed by a move up into strength .
But the day trading only works when I have the whole trading day to focus on it . For the next two months plus a bit , I am pretty much going 7 days a week working on jobsites. Makes the day trading not possible for me. So, I am going to watch this as a pullback play , end of day entry .
Moving out of my "base building" list to the top of my primary buy list and I will be watching for pullback based entries in future ..
Ps : My strategy is to buy later , I don't go after the breakout itself . I wait for a break up past and then ideally pullbacks on daily chart that still respect and uptrends characteristics. Normally, I am not allowed to buy in bases or breakups, though I do have some exceptions , primarily for day trading something (then the rule doesn't apply) I like to day trade because the rules change allowing me to enter sooner due to trading off a lower timeframe that provides earlier actionable signals .
It looks like it is low volume pullback. Opened a position?
NAK1987
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@mkarabukaev, Nope I'm 95% cash right now , the market is below the 21 ema so that got me out of my TQQQ, then we lost the 50 so that got me out of any positions without cushions , then we had the bond yields run , which stopped me out of my cushioned positions ... So right now , cash is king, for me . But I will be getting back in with my TQQQ strategy when the signal is right ... I am going to try to post that too btw, have been working 7 days a week some pretty late nights off the jobsite . Started 9 am the other day and left at 10:30 Pm lol, so limited time to update ideas. However I am working at a LABD/LABU day trading strategy daily ... still early but getting good results for the first hour of day just trading a trend on those ,more or less just jumping on whichever of the two is going up , 1% set stops . That's a day trading strat but as for regular positions I more or less will sta cash while we are below the 50MA on QQQ, the first thing I will buy is TQQQ too. Cheers buddy
mkarabukaev
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how do you pick up your day trade tickers?
NAK1987
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@mkarabukaev, 1) develop and backtest an entry strategy , with a minimum sample size ( 100 sample size is pretty good to start and can be any time frame) . Make it yours , must
have conviction in what you will create as your personal strategy(s).
2) Practice entry's every single day . Even if you don't have the time to trade during the day , you can use TV's chart replay function . Log all the trades on a
spreadsheet and take a screen shot to save for future critique ect.
I personally use several signals I have developed suited to my trading style but you will start with only one signal you identify initially and as you practice and
practice and disect what you are doing you will start to modify and enhance your methods. I took me two years to become profitable on the day trading front too
btw and I cant stress how important chart replay , records and practice is.
I find that I can use almost the exact same logic daytrading as swing trades. For the daytrading, the main difference, is just that you will get more of the same
signals on a lower timeframe allowing you to enter when you would normal not have a signal . As for how I screen , process is the same I am daytrading stuff that I
find searching for swing trades.
mkarabukaev
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@NAK1987, thanks a lot for your explanation. I am still learning, hopefully will get better at trading.
I like Volume price analysis and have read two A.Couling books. So my strategy will base on what i have learned from VPA))
I like your trading ideas, even though never traded them))) This break-out strategy I think will work very well.
will keep an eye on it))
NAK1987
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@mkarabukaev, awesome , glad you got something out of it and that series of books is fantastic I love them .
There's some other books I'd like to recommend but just on the job site right now , I'll put together a list a bit later for ya .
NAK1987
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@mkarabukaev, One other small difference , for me , is that for day trades , my rules require me to enter a position in the final 10 seconds of a candles close, ideally even closer to the 5 second mark ( helps reduce false signals ) . Swing trades do not need this for me , but I actually like to still often enter on the close that being said :) .
NAK1987
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@mkarabukaev, Hopefully some of that was helpful for your trading . Have a good one . Feel free to shoot more questions should you like .
NAK1987
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@mkarabukaev, In regards to the book discussion , here's some suggestion's for your consideration that I really liked :
How to make money in stocks , William J O'Neil
The complete turtle trader
Mark Minervini, Trade like a stock market wizard
Mark Douglas , Trading in the zone .
Stan Weinstein , Secrets for profiting in bull and bear markets
If I had to pick just two of them it would be Trading in the zone and Stan Weinstein's . But they are all great . Trading in the zone though , that one is probably the most important .
There's obviously tons more out there but those are ones that I have read that I liked alot.
mkarabukaev
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@NAK1987, thanks a lot. I will definitely read them. I've heard about Trading in the zone before, but haven't had a chance to read it. Will start reading it today, thanks for your help.