Winners for 2019 | Connie Hill, CMT | 12-31-19 | Technically Speaking: Trading Stocks & Options
Good. Afternoon welcome to our trader talks in our, technically, speaking. Today. Our topic. And what it has been typically, as trading stocks and options, and. Today we're going to wrap up a series we've been doing on. Short-term. Swing trading alright. We're. Going to look at some positions, hopefully give you a better idea of how to manage positions, and how to assess, them as we. Look at the ones that we have going on in our paper account and then, you know the old saying winner. Winner chicken dinner. Alright. We're going to talk about not. Only our positions, that are winners but also I want to show you a short scan so you can see who the winners were for. The Year 2019. Given. That today is the last trading, day of, 2019. And sometimes that could be helpful to see some. Of those stocks that did perform so well so, hold on let's go through a little bit of information here, and we'll, get down to the fund now I do have to say Happy. New Year to all of you and Frank. I am going to tell you you, have the best comment. Of all. 2019. Frank. Says wishing, a happy and prosperous new year also thanks to the education, coaches. For, their efforts, to provide us with guidance, to achieve success. You. Are a winner winner Frank, appreciate, those comments. Also. Gerald, and thanks. To you, for your comments, as well all. Right. Options. Are not suitable for all investors is, the special risk inherent option trading may. Expose investors, to potentially, wrap it in substantial. Losses. The. Lesya stock market order which we may talk about a little bit here will, not guarantee an execution, at or near the activation, price when. It's activated. The order competes with other incoming, market orders past, performance, of any security, or strategy, does not guarantee future results or success. Then. We'll call it good all. Right there. You get what. I'd like to do today is I kind of tried to summarize in the beginning here is kind of wrap things up with the swing trading that we have and doing so. Just review what swing. Trading, is, and, what a setup is, we're. Going to really focus on the bowler side of things identify, what a short term bullish, swing. Setup. Is, and. Then we're going to not focus. A ton on where the initial exit, order it was or position, sizing but. I do want to focus on trade management techniques. And then. Of course we're going to be using the thinkorswim, paper, money for, this so. In terms of the definition. If there are some of you that maybe haven't, been here, maybe. You're just joining us new or maybe you're watching this on an archive you. Might appreciate, just, having a little bit of help here in terms of what we're talking about so a swing trade is a short term trade that generally, lasts, about two, to, seven days, swing. Traders define their entry, their stop their target, price before. Entering. The trade both. Swing traders typically, enter near support, and, exit. Near a potential, resistance area that, could be resistance, on the chart that it's already seen it, could be resistance, area as far as maybe seen a price pattern, and seeing, what a target, might be that it might encounter, some resistance or. Might actually be able to get to. Swing. Traders, typically, like to follow. The. Prevailing. Intermediate. And long term, trends. Meaning. Swing. Traders like to go along with the flow of the ocean the flow of the stream as opposed to swimming, upstream against. It and. Filling. Some of that drag. Now. The setup, that, we. Talked about is what this stock chart needs to look at prior, to, giving, you the entry signal meaning prior, to being able to say all right let's. Pull the trigger all, right be, helpful, for you to know, all. Right. Let's. See I see, here loops sorry about that. I'm. Back. Pease, I wanted to, really. Focus on here, first, targets, at the first swing high. Second. Target could be what, is predicted based on the flag the. Flagpole, height and the. Initial, exit order is. Right, down here, below. The. Low of the low candle, candle. In, the pullback all, right that's your initial exit. Trade. Management, techniques that we're going to go into in a lot more detail here, yeah. Number one, adjust. Your exit, order we talked about the initial order is just below, the low now that could be 25. Cents, below the low it could be 1% below the blow it, could be in penny, below the low you get or decide and it may differ from stock, to stock, what.
You Think might be the most appropriate and it might depend, on how long and tall that candle, its bids are really long until a candle, you might not want to give it as much room as maybe. A short squatty candle, that still qualifies, I don't. Know if squaddies. Technically. A real term for a candle, but. We'll still, go with it all right profit. Management that's what we're going to focus on a lot here. Can. Sitter, maintaining. A one-to-one ratio between, potential, gains to. The target. And what the current price is for example would. You be willing to risk three dollars two and a half dollars or two dollars basically, some. Unrealized. Profits. For. Which, would be willing to risk that for the, opportunity. To gain 50, more cents in the trade 25, cents more in the trade right. You've gotta weigh that with risk, and reward based, on gee well you already have, and is. It, worth it to hang in there when. Maybe you're not going to gain that much more for. A directional, option trades and we've got one of these here today that we're going to talk about in our paper money portfolio. After. Five, to seven trading, days. Consider. Adjusting. Exits. To, avoid time decay now, those of you that are not option, traders may not totally understand. What that means, but. When you buy shares of a stock they, don't have an expiration, date right, you just own the shares when. You buy an option or sell an option they do have, an expiration, date and if, you are a buyer, of that option that. Time, element. That's part of the pricing, of the option. Decays. And what does that mean it means the value of your option, decays and so. If the stock isn't producing, and doing what you thought it would do in a. I'm. Gonna say a period of time that seems to be reasonable. Then, you may have to consider getting out just cutting your losses realize hey a particular, one did not happen, to work for us at this time all. Right. Let's. Do, this let's go out to our thinkorswim. Let. Me pop this out. And. Let's, go ahead and take a look at this on our. Big board. Now. What have we got here going on actually. Let's go over here to the monitor tab first of all the. Positions, that we currently have going on, here are right, here Bed Bath & Beyond home depot info. Microsoft. Nvidia all right these are all positions, that we've got now. I haven't, listed, up here in. The watchlist that's over here on the far right. Hand side. Actually. This would be my left hand side. We've. Got them listed here and what I want to do is go through the charts, on a couple of them and then, come back to the screen and say what. Do we need to do to. Accommodate. Or, to manage this particular trade, now. I want, to start off with, the. Losing, trade okay. If. We come over here to, our P&L. Open right here we. Can see most of these are profitable, positions. With the exception. Of who's. Our big loser here, Home Depot and it's not a terrible. Loser here, down. 527. Whereas. The others are up at least something fairly, positive, but. It's something that needs to be addressed now let's go look at the chart here of Home Depot and. Let's. See. What happened. Alright, let's kind of zoom in here, this. Part of our chart. And. We. Entered, a long put, trade in fact I should have shown, you what the trade was it's. A long put it expires, in January, on Home Depot we got in on, this. Whoa. Okay. We'll try this again we, got in right here on that green dot I like, to mark those on the chart so I know, when. We entered into that position now. It wasn't one put the expectation. Was that it was going to drop. Lower, on. The. Day that we talked about the trade and. It. Had, actually ran up a little bit in fact those of you that know price patterns, might look at that and go holy. Smokes, we've. Got a nice little bear, flagpole. Kind. Of a textbook. Look, of a flag on a bear flag and then, the, drop, now. The expectation. Was that. Once, it broke out of. It's. A little consolidation. Area there in. Fact I think I may have marked, the wrong day of entry here because, I, had. Measured out the flag, here. And I, had clipped. On here. The, height of the flagpole so. It gave us an expectation of, a potential, target it, doesn't mean it absolutely positively, would, go there but it gives us an idea of what we're, looking for all. Right and sure. Enough it, came down. Most. Of the way all. Right, most. Of the way then.
It Found some support it never. Did. Go exactly, to, that target down below, now. This is where the management, piece of this comes in you. Probably notice we have the holidays, all. Right and, in. The two weeks since we've had our class and things have happened here, where. We. Weren't really managing, the trade so much because we weren't having class and person. With the mouse was not monitoring. This position. But, on. A shorter-term. Directional. Position you really want to stay on top of it okay, but, what happened, here man. It. Had a nice, little, rally up higher dipnet. Through. This rally, were. There any exit, signals, or something that said you, need to lock, in your profits, here because. Through this period of time, it. Was a profitable, position as long, as it kept dropping. All. Right so management. Wise what. Could you look for to say mmm, maybe. We oughta maybe move the stop-loss up, lock. In some gains. Remove. Some of the risk that's on the table. Right, through here. Actually. Let me get my my drawing finger. Back all, right when. The stock found. Support. And it, wasn't dropping, anymore, and we, have I'm, going to say, one. To three. Days there, where you did not advance, and on. This fourth day that. Might have been a signal to some technicians that say hey this is a bullish candle it's not dropping, let's. Lock in the gains that we have because. During this period of time where it's going sideways what's, happening to the option. Yeah. It's kind of like, sugar. Sitting on a tooth it starts to decay alright, the value is not so great and then. Of course we. Weren't watching the trade we weren't managing it and then, it had a nice, little, run up here, that. Basically, put us way down on the position, let's, go take a look at it on our, other screen here, and. I should say this is well that if you have questions as we're going along here want, you to ask them I'm going to keep track of the. Chat panel, so. As you have questions feel, free to chat those and I'll keep an eye on it. Now. Let's go look at how ugly this is okay, like I said we're starting out with the ugly one. All. Right so here's our position, Home. Depot it's a January. $215. Put, as. We were looking at it it did have a nice, that didn't actually have quite a bit of time on it but, look right now how, many days. Does. It have before, it expires. Well. That's this column here, has. 17, days before it expires, we. Are in the stretch where it's super, decaying if you imagine that time decay is like an. Ice cube or an ice cream cone or something like that and you're sticking it closer to the fire then. It decays, it, melts, a lot more rapidly, the closer it gets to its options, expiration. Date it's kind of like that fire gets, a little bit hotter and melts. It down even, more so than it would have done 45 days ago or 60 days ago. All. Right let's look at how much we're down on it I'm going to come over here to, our P&L open column where it shows were down 525.
And Actually, let me show you we're, down 525. And if we were to liquidate, the position, it's, only gonna give us 200 bucks right. Many. Times option, traders will say you know if I've, lost half, the value of that option. They. Might say that's their line in the sand it, doesn't have to be your line in the sand your line in the sand could be sooner than that maybe it's 40% maybe, it's 30%. But, like I said many traders will say man I've lost 50%, this, trade did not go my way. The. Thinking, there is appropriate, I would say however. There. Were opportunities for, us to, take profits, in this trade if. It were properly, managed and I'm, going to give you a crude, analogy. For. Time decay for those of you that this is just kind of new to one. Thing you're gonna notice is if the stock goes the opposite, direction of what you thought it should and that option starts to decay and let's, say over the course of three or four days it finally, comes back to. The. Price well. The price of the stock comes back to where it was before it started to pull back your. Option, doesn't, string. Back like, a rubber band okay, it just doesn't instantly go there because it has that decay element, that's, pulling, the value down and so, and, this is where the crude analogy, comes in here it's more like a piece of chewing gum okay, that you have in your and you kind of pull it out a little bit although, you would never allow your kids or grandkids to do this all, right don't. Do this at home I and. You let go it doesn't really spring back does, it it's, kind of like a stretched-out and, you. Know if it were more like the rubberband you. Might not see. That decay, quite. So much all. Right now, here we paid, 725. For this option right. Now it's down to 201, have. We crossed that 50%. Line, yeah. Absolutely we. Cross that 50%, line that, would have been in the neighborhood of a what about three. 360. 375. Something, like that all right it would have been kind. Of that midpoint mark, and yes we're clearly below it now. Is it, a good idea to, have. Hope, in a trade is, that a good strategy, to. Have hope let's. Go back to Home Depot's chart here real quick. It's. Lost a ton of time, decay through here now, it looks like it's starting to drop but again hope iam is not a very valid. Strategy, it's not a strategy that we teach, okay. And, so, some people might say okay maybe I'll put a stop loss on it that, if it reverts back up, higher. Than today's high you, might get out you, might be able to squeeze, a teeny, bit more lemonade. Or, teeny bit more lemon juice out of the lemon that we have right now but. It's not something that would be good to Bank on for our purposes, today we're just going to close the trade out we're. Not gonna be. Here with, hoping tomorrow. Well the markets are closed it will still, decay. All. Right so let's go let's go close. It out we've. Got our position. Here, Oh what. Could now it'll liquidate for 201, dollars instead of 200, all. Right we're gonna create a closing, order it's. Just gonna go and select that option for us. Home Depot is pretty liquid, all, right so the bid-ask spread, shouldn't. Be too bad for us let's see where did it go.
180, Or 215. Oh. That's. Why the January, or the February, options were open instead of the January, options, I wanted to see here. Alright, there's our position, it's clear down to a 39. Delta, that. Gives us an idea that there's only a 39. Percent chance. That, this. Option will expire at least a penny on the money well. We need it to be more than a penny and the money to. Actually be profitable, on the trade because remember we paid. Seven. And 7.25. For that option, all. Right but. It is pretty liquid, here just a small. Spread. Between the bid-ask prices. Some, people might say let me try to get it for the midpoint price well, we'll, see it's kind of jumping around right now it might not feel but we'll see review. It make sure it's what you want notice, transaction, fees that are on it this was only one contract, and then, we'll go ahead and send it in and. It looks like we did get filled at. $2. Which. Was kind of that midpoint price. All. Right let's. Go to our next trade here. The. Rest of them are not ugly babies well. I shouldn't say babies, but, let's. Take a look at Bed Bath & Beyond here before we go to the chart. This. One we have, 446. Shares of the stock does. That mean we're concerned about time decay. Not. Really we, got into this trade, on the. 17th. Of December, so a couple of weeks ago and, let's, just go see what the chart looked like. We're. Going to come, over here. And. We're gonna go to our Bed. Bath & Beyond and. Let's. Zoom in here a little bit so we can see it better. Oops. I didn't want that, it. Thinks I want to dry out let's just zoom in. Really. Tight, now. When, we took on this particular trade, we got in here on the 17th, what was happening. Well, what like the price was busting, through resistance, it looked like we have a breakout, entry, and we, checked the, distance, between this kind of this short little range that it was consolidating. In and, said. Okay the height of this rectangle, could. Be the, potential, target, that that. We're shooting for for, this stock for a short-term swing, opportunity. Now, again no options involved so no time decay but let's see what happened, here. I think. I actually need, to pull this down a little bit. Maybe. We're seeing it okay, this. Line here, is the. Line. That became. The target, off the height of the rectangle and, so. In, terms of what we were looking for as an. Exit we had a target, we have an O Co order we, have a target, if it hits the top there, to. Get out of the trade we. Have a stop-loss clear. Down here if, indeed, it broke down, through. The support area we. Didn't give it a lot of leeway you can see where those are where, those are in place, now. The high here was 779. The high this day. They. Were not gonna trade it the high this day was. 1749, it. Was 30 cents lower than that target, so, it almost, got there if somebody were kind, of micromanaging. This they might have said hey is. It's, 30 cents short of the target that's good enough for me and they could have exited the trade if they wanted, to now. We didn't we weren't monitoring, that close over the holiday weekend, warrior I guess, we didn't have it on the weekend I'll say the holidays that we've had is, still, trading in this range now what, could we do if we wanted to to. Manage this trade more would. You be happy, if we were up on the trade and you ended, up taking a, loss on the trade because. It came and went down below the stop-loss, we. Feel, okay about it or would. You say you know we did expect it to hit that target it didn't do it but. We're up on the trade we're not gonna take a negative. And. Walk. In or have a negative. Value. On out that particular trade.
Think. About how would, you want to handle it might, be different for each person, however. Some, of you might say well what's the lowest price, its traded, in the last two, or three days and. You. Might say I'm going to go a little, bit below that maybe, not a lot so if, they we came over say for example, to that candle, it, looks like that though the low that day is, 1635. And, so. We might say you know let's move our stop lights just a little, bit below 1635. We're. Gonna maybe. Lock. In a little, bit of profits, because we got in on this big candle, day so. Let's move it up, let's. See what was that value one more time. 1635. I'm gonna move our stop loss up. Let's. Get rid of that. 1635. I'm, gonna look over here on the side I am. Very very close. Alright. Looks. Like it's coming up at 16:30 four I'll take, it just a penny off that's not bad, alright. Review, it make sure it represents, what you want let's. Send it on its way, that. Would be one way to. Handle that. Particular trade. That we've got in our account alright. Let's come back here we're gonna come to the monitor, tab that. Was Bed Bath & Beyond we did a Home Depot already. Let's. Look at. The. One right under home depot which, is info, Infosys. And. We've. Got stock, once, again hundred forty one shares, we. Are up on the trade pretty, nicely this, is when we're up about fourteen, sixty, on all, right which is a nice, amount. To be up on the trade and. Let's. Check the details of this. We've. Been in this trade since, July, ninth. Now, when isn't necessarily, a, swing, trade right, it's turning, out, and that, was proud of the intent at the time as well was to do an intermediate time frame trade. Right. Not trying to get in and out seven. To ten days but obviously much longer here, it's been in the market almost six, months. All. Right so. Does. This have a stoploss on it. No. It, doesn't, doesn't. Need a stoploss on it yes. Definitely. Needs a stoploss on let's come up here to the charts. Let's. Come over here to, info. Let's. See as. We're looking at this, now. Because, we got back in in July I don't have it showing up on this on this, chart, we. Could we could bring up a longer range try but I think you get the idea we've got an upward trend in stock it's running, and and it's nice if you can let your winner run, where. Is the stop-loss down, here, it's. The most 68. Bucks are we. Managing risk, very well no. We're not. Should. We manage risk better yes. We, should okay where. Could, somebody use some technical principles to help them identify, where. The stop-loss could, go, all. Right we could look at. Maybe. A little. Bit below the, 30 day moving average that's, a possibility, we. Could look at where. Was the most recent, low, those. Two candles, coming down and kind of touching that area could. We go just. A little bit below that, now. We certainly could. All. Right, either, one of those could be entirely, appropriate some. People might not like this, where the two candles, came down just because it's so tight, compared. To where the stock is and if, we want to let the winter run we've, got to maybe give it a little bit more, leeway all. Right let's check it out here. Let's. Come over. To. Our calculator. And. Open. That up. On. The calculator. Let's. See where our 30-day moving averages can you guys see this over here that, number in the red box, 7356. That's, the current price of the moving average. What. If we said here let's do 70. 3.56. Times. Some. Value maybe. 2% below, support, 3%. 5%, sometimes. It depends on the period of time you're trying to trade if somebody's. Got a long long term. Purchase. That they've been holding on to for a long time. They. And, their and they are of the opinion that they, want to hold this baby they. May be more lenient in far as far as how much leeway they might give up for a stop loss let's. Go three percent here, all right in this instance, so let's say times. Oops. Let's, add something in my calculator, already seventy, three point fifty six times, point. Ninety seven. That. Gives us a value of 70 135, where. Is 70 135, about. Right, there, pretty, close to right there. Does. That taking risk off the table yeah, that absolutely, is taking some risk off the table let's move up our stop-loss, seventy. 135. Let's, see if I can get it well, seventy 136. Oh we. Did it stopped at 70 135, yay. All. Right let's, lock in some profits, here now. I'm. Going to say I can't, say that they're totally, locked in because. Anything's, possible horrible. News for info their CEO. You. Know does some big blunder of some sort right and maybe, the stock gaps down there's.
Always Something, that could happen that maybe it jumps, over our stop loss and has to get filled down lower. However. For most instances. This. Will allow us to to, take some risk off the table from where the previous stop loss was, pay. Attention, to any Commission's, you may need to be, aware of, alright. Remember is you have questions, go ahead and chat them in. There's. One more, in here. Activity. Positions, we. Haven't, well there's actually a couple we've. Got a position, of Microsoft, in a position on Nvidia now and Vidya. We've. Been inside since, October. We. Do have a stoploss on let's go take a look at it on the big chart. Wild. Mouse here, and. I'm, gonna give us a little bit more time let's start out here about six months. All. Right going to a big board. We. Can see a little bit more time here about six months right, half the year what is this stock done make. Higher highs higher lows higher highs, higher lows continues. To go up it's, it, can be a little bit of a volatile, stock it can be a big mover, today. It's only up one percent so today not moving that strongly. That's, alright. We. Entered the trade here. Right. There were the Green Dot is we, got in on a breakout. Type entry, where. It broke through this resistance. That was here. Okay. And that's, our initial stop-loss. That. We've had in place since October, okay. We, haven't had a ton of classes, on managing, positions but, that's. One of the reasons we're going into it today as, long. As the stock is making higher highs and, higher lows, people. Might feel comfortable moving their stop-loss, up as, a new. Support, level is created, so we're have been some of these support levels. One. Is, possibly, the 30 day moving average although sometimes, it doesn't come quite, down, to it right. Here it came fairly close to it, how. About, horizontally. Right. Maybe there has, been some support, there horizontally. Maybe. We're, seeing another peak here, and. Possibly. That peak, that had been old resistance, is becoming.
New Support. Somebody. Wanted to be fairly tight with the stop-loss they. Can go a percentage, below that if. Wanted, to give it a little bit more leeway they, might go ahead and say. Go. A little bit below the moving average although the both of them are very very similar, they're kind of crossing over each other near the same spot all, right, so when your brain I want you to ask yourself what, do you think it would be appropriate for, you. All. Right the, answer isn't gonna be the same for everybody. Like. I said you and your neighbor. Your. Your. Web neighbor on our web webinar. Our web cast might. Be a little bit different. All. Right but certainly, some, risks could be taken off the table. Because. The, stock has been pretty, good at mostly. Staying above this 30-day moving average for our purposes, today we're going to use it as our, support area so let's get rid of all our calculations let's. Do 220, 1.43, that's, the number off, here to the right in the red box, times. 0.9, 7 3 percent below. Whatever that number is is. 214. 87. And try to put my mouse really, close to that area, it's. In this neighborhood. Right giving it a little leeway below, the moving average again, how we're doing it for our class today you. Might not think is, appropriate for how you would approach it but, for our purposes, this this, is what I want to do is, move. Our stop loss up. Come. On stop-loss. Cooperate. Okay it's not going to cooperate let's. Do it a different way let's go to our monitor, tab let's. Go to. Our. Working. Orders, let's go find Invidia. And. Actually that's okay so I can show you another way to do it it's, actually our oldest stop-loss, order in here we're. Going to do a right, mouse-click. We're. Going to do I cancel, replace. And. Here. This. One actually is based on the, price of the option we're, going to change it so it's based on the price of the stock all, right so we can see this 190 call so. We're going to come over here we're going to change this. To. A market. Order and we're going put some conditions, on it we're gonna click in the box. It's. Going to come up we're gonna say when the symbol, Nvidia, gets. To. Below. We. I believe that's outer below we'll look at the verbage here, the. Value we decided, was twenty, two fourteen, seventy, eight. To. Fourteen, point seven eight, and. Then. Look down here. That. The, security, is less, or, equal to two forty two fourteen, point seven eight alright. Let's. Looks. Like that's locked in then, we're gonna say trigger, market, order make sure this is still good till cancelled which is generally. About. Six months alright. We're just updating our so that six month time frame would, start over make, sure it represents, what you want notice any transaction, fees we're. Gonna go ahead and send that off it cancels, the old order puts. The new stop-loss in place. And. That. Does not look, like to 1478. I wonder if I type out that. Let's. Come back and look. Or. If I typo that and you noticed. Let's. See what the condition says in here. To. 1478. Okay, so we do have it in the right spot, it's. Just not showing it in the right spot, in the, graph okay. Haven't really seen that before but. We. Checked it is set. Up the way that we want it to even. Though the graph isn't showing that alright. Let's. Move to our second, topic that. I wanted to focus on we had, some time to look at some of our paper. Trades in our account how. To manage them lock, in some profits, take some risk off the table, now. I want, to get back to the winner winner chicken dinner. Alright how. Can you find what, stocks performed, the best over, the last year, I'm. Going to show you is a quick little scan to do that the. Purpose, of do so isn't to say hey these are the best stocks in the world you should go out and put them on your watchlist as it, is so much to show you the scan tool and how. It can help you find information that, you're interested in all, right so, come over here to the scan, Oh.
John. Had something here. John. Had said new viewer before, and could you demonstrate entering, a stop-loss, order, and, then. He clarifies, that the original. Stop-loss. Let. Me do that before we go to our scan okay John, I. Suppose. What. Do we have here Nvidia, let's. Suppose you were going to do end video you just wanted to buy some of the stock outright you. Could come over here to the ask price, do. A right mouse-click, say. Buy, custom. And come. Over here and choose stop. All. Right it sets up your by order in green, it. Sets up your stop-loss, order, in pink and it will take up a couple of rows don't let that alarm you you'll. Put a price in here that you think is appropriate for, that in. Our case we were using to 1478. Because, it was 3%. Below, the moving average, so you could do that on the stock and then, you would come over here and make good till cancelled, which is that six months so. That you. Don't have to go out and set the stop-loss order, up every day so. The quick thing is right, mouse click buy. Custom. With stop, it sets all of this out for you the. Stop won't be in place unless, the buy gets triggered and that's what this little order. First. Triggers all represents. So. Hopefully, that did the trick for you John great, question, if you have that question and there, are other new folks in here they're, gonna have the same questions, so I love it when you ask, alright. Let's jump over here to the scam tab. And. What. I'm gonna show you like I said doesn't mean this is the best scam that. You should always use it let's reset this we're gonna say reset. I, had. Another scan in there this, is what this looks like when you initially, come into the scan. You might not have a lot, of exposure on the scan I believe, there's a tutorial available on. It and I've showed it in previous, webcasts. So. When, we're finished with, our class here I'll see if I can't put that link in to showing you how to use the scan in more, detail but. For today. We. Are going to kind, of change this up a little bit on this, first parameter that comes out of stock. I'm. Going to come down here, and just a last, which represents, the last price, now. For today I'm going to put $20, if. You want you can put in a range. If. You want to go lower than that you can go lower than that like that's why I say for today for our purposes, that's what we're going to use now, this volume means today's volume and I really want an average, of the volume and this, percent, change means today being, up a certain amount you, could keep that in there or take that off we're for sure going to get rid of the volume. And. Let's. Get rid of the how. Much it, is today. Up or down because that really is in material we, want to know the best performers, over the course of 2019. Alright, so we're going to add a, couple of filters here we're going to put on a study, filter, back. To think we're going to do to study filters, here. All. Right first one we're, going to do that volume all. Right so you have some. Liquidity. That you're comfortable with I'm going to say the average volume. Over. The previous, 30 trading. Days or bars is. Greater, than, this, value now the default is a million if you like a million leave it if. You are, comfortable. Doing more, put in more if you're comfortable with less do, less I'm. Gonna put in here. Actually. I'll do a little bit lower I'll do 250,000. Alright. For. Those of you that are that are really sticking, with stocks. 250,000. Is ample. Liquidity. Then. The next one we're going to do is price. Now. When we're talking about trans this is one way that you can find a trend but, essentially. Where. Did it go, average. Volume oh not. Now at volume price, I, goofed. Okay that's why, my. Price change was in there when, you think about a trend it basically means the price, of this stock is going. Higher and higher now I played. Around with this a little bit earlier here today and I. Wanted to determine, what's. A pretty, big. Percent. Gain, for. Growth. Stocks a lot of times we'll use growth stocks in this particular class, as opposed to a dividend, paying stock or a value oriented stock, and so. With a growth stock I played, around with this first I put in 30 percent then 40, and 50 now we're gonna do 60 percent I think is what I ended up with here we're. Looking for stocks that are at least up 60, percent then. Blank. Bars ago bars, basically means trading days or candles, trading. Bars we're, going to use, 265. No. 253. That. Would represent how. Many trading days, we've had in the year 2019. Very. Simple, we're, going to. Say. Let's bring back a thousand, it's not going to be a thousand, but they'll be a lot and, I, want it to sort it by I. Actually. Wanted to sort it by it's, a. Field, it doesn't have I'm going to add it here real quick and it.
Is Our, 12-month. Return. This. Is a think script 10 Rose teaches a great thing script class on. Tuesdays. Of 5:30 Eastern Time. If you want to join him join, him for that he, has a lot of these little calculations. That are just superb, I'm, gonna move that up to be right by the percent, change today. I'm. Gonna say okay and then I want it to sort by that we're. Gonna sort by. Where. Did it go 12-month. Percent, return, and it, really isn't a return but it's a it's a change but in this case we're looking for positive numbers, here, all. Right so, we have, here it doesn't look like it sorted. It by the twelve months. Well. It actually did. Possibly. But we're not seeing it to prove it. That's. Okay. Percent. Reads heard it's, not okay actually I do need it here. I'm. Gonna customize, this and. 12-month. Return, oh, oh. Here, it is it's just being squished out there's it didn't have enough room for it here we, go, alright, here's our 12-month return, it, doesn't look like it's absolutely. Sorting. It that way so I'm, gonna sort it that way all. Right in. The last, year. Being. This is a year and you might be viewing, this later the. Stock that performed. The best over, sixty, percent this, year is this. Aksum. Therapeutics. It's. Up, three. Hundred. Or, three thousand, six hundred and twenty one percent okay. Let's, just view the chart real quick a, access. Am. And. Holy. Cow this stock went from. Let's. Say. Probably. In the neighborhood of eighteen seventeen, and could have been lower and. Huge. News here I didn't research to see what the news was but being a therapeutics, company it could have something to do with, being, able to get something passed from the FDA that, speculation, on my part I, would go check the news to see exactly what fueled that but. You can see the stock is up tremendously, now, some people might be concerned and say gee it's already have such a huge, growth, huge. Rate over the last year why, would I even stick it on my watch list and it's definitely, a valid concern these are the types of stocks you want to go and check out but. At least you know who performed. Well. And what they did now. You can save this scan if you want.
You. Can save the results. The 263, stocks that came back here you can save those in a watch list in fact. I'm going to call this class, three. And if, we have more, time would go in and take a look at some of these. Pull. This up. Personal. Class-3. Here we go those. Stocks are there and you could come over here to your charts. You. Could also put. That 12-month, return, in that column so you can sort by it and then. You can come over here in your charts and, just kind of go down and review and go, in and look at the news on some of these companies. Some. Of them maybe, they are just getting their big burst maybe, they've, been no-name companies, that are just gaining, some recognition, starting, to produce some good numbers you, want to go in and research those kind of companies and if you do want some growth stocks on your watchlist. For. Purposes, of advancing. Quickly on price then. You do want to check them out alright don't just say oh it's a great great. Number, G will therefore go for it no, that's not how it works but, I do want to give you a baseline, there could be other criteria, you want in the scan, as. Well maybe, you want a p/e ratio, in there maybe, we'll limit how many stocks do come back because, anything that has I'm. Going to say a super, high p/e ratio, sometimes people don't, really want to work with them alright. Let's. See question here. Heavenly, jewel says when you save a scam as a custom, watchlist, and I'm, going to change that to the results, of the scan to a watchlist. How, do you get it to alert you a new, symbol is added actually. You're. Not going to be alerted, that a new symbol is added, however, I will show you this real. Quickly I'm over, my time so I might as well go over my time a little bit more just, not too much if, you come down here, and you go to quotes, I. Take. That back if you come over here and go to scan and if you had saved it, you. Can come down to, the watchlist section, and we. Can go to. Personal. And. I did not save this scan with you guys I did save it earlier on my own and I. Saved, it. Here's our class three but if you save this scan maybe I didn't save it in this application. It'll. It'll have the name here and it has this little purple icon next to it kind of looks like a little. C, with a circle around it kind, of like a little bold sign that. Will refresh every day when you go and pull up that watch list okay, so if I came over here what was the name of that again. Bullet, stocks with return, on equity. 15%. All. Right all the stocks. With. Return. On equity. And. There. It goes now it, is populating. It will do it automatically. And it will do it every day but you have to go in and choose it so it'll go run, this the, query the scan and then, populate. That and then from that point you can if you want you can go through bring. Your charts up and then you could go down that list alright, you can use, your keyboard just, to go down or if your mouse person, use your mouse alright. Hopefully that makes sense great. Question. The, scan is a separate saved the watchlist is a separate safe all, right so that you can go in and use them differently if. You save the scan you don't have to go and create the scan all the time all. Right let's just kind of summarize what we went through today and the things that I want you to walk away with is, we talked about what is swing trading we. Talked about when we got in on some of those paper trades what the setup was whether it was a breakout whether it was a cold, bounce, a lot of them were breakout trades we. Talked about techniques. To, manage those trades as we looked at our paper trades I didn't. Get so much into risk and position. Sizing but everything, we did we, did and thinkorswim now, what would I want you to do how, can you, apply. What you've learned today look at any open, paper positions, you have and, go, in and determine do you have a stop-loss, if, it's a short-term swing trade do you have a target and a stop loss remember you're not planning. To be in there for very long maybe a couple of weeks at the most so, make sure you have those in place so you're not trying to go capture it sitting. In front of your computer screen all day. All, right put those system controls, in place by just placing a target. And a stop-loss order all right now. I do need to remind, you that in. Order to demonstrate functionality. To the platform, we need to use actual symbols but TD Ameritrade does not make recommendations. Or determine, suitability of, any, security or strategy, so any decision, you make in your self-directed account, is solely a responsibility. We. Do have a new, schedule that. Will start Thursday with the New Year January 2nd, this, class will be at the same time SOT as as. Far as it's starting, however. It will not be as long of a session ok it's gonna be a little bit shorter which, is alright that's. Not a problem and, we probably are going to do much focusing, on swing trades swing trades you'll want to get, with.
John. On Tuesdays. At 9:30, Eastern and that he focuses specifically, on swing trades and if, you're new to options, you're trying to understand option you'll want to go through getting started with options with, barb Armstrong, and that's gonna be held and has been held Fridays, at, 11 o'clock Eastern, Time and she walked walks you through the different strategies, all right you, guys been great today I am, glad we've had some good discussion, here. Alright. Just making sure I answered all the questions, the. Second part of that question, heavenly. Jewels I probably, should say you're. Not going to be alerted that something new goes on the list you just run it and then you see what populates, at that time if, you wanted a price alert or something like that you'd have to set it up separately, alright. Thanks for being with me today, right at, the top of the hour we. Are going to have a question answer session that Cameron, may runs and. Basically. Over traders, stock, trader, talks which are typically, more. Interactive. Type trading, not long term trade, holding, alright he's, gonna be there to answer you two questions no drop. In on his session he'd love to see you there and you can get some questions answered or just, be a fly on the wall hey thanks everyone have. A happy and safe new year we'll see you in a couple days. You. You.
2020-01-04 04:30
