Phoenix7's Stock Sizzlers

[Phoenix7]

Good morning fellow travelers , today I would like to list 5 stocks that have reached their 52 Week Highs Yesterday 12/7/11.

1. ASPS
2. LQDT
3. MIND
4. SMP
5. SPSC

I am experimenting with a trading method that will set DUAL orders which state that ONE will CANCEL the other. This can be done with TDAmeritrade and most other brokers.
First you will put in your BUY order , and AFTER the stock is purchased immediately go in and set a SELL LIMIT order which is 8% ABOVE your buy price, and SELL STOP order if the stock drops 5% BELOW your purchase price .
For example for a $10 stock simply multiply by 1.08 to get your 8% SELL LIMIT Price of $10.80, and then set your 5% SELL STOP order for $9.50. To calculate the SELL STOP order merely multiply your stock purchase price by .95 to get the $9.50.

If 2 stocks rise you will make 16% , and if the other 3 stocks drop 5% you will lose 15% still having a net gain of 1%
Yes a small win , BUT NOT A LOSS!
Now consider the possibility where 3 stocks rise a 24% gain and 2 stocks suffer a 10% loss.....that still gives you an AMAZING 14% gain .

Not a bad way to protect yourself from dramatic losses!

[edward]

I keep looking at LQDT but the P/E really worries me as a long-term hold. Have you noticed though that, almost every day, it's cheap at closing and peaks shortly after the bell rings in the morning. Day trading opportunity?

[skiracer]

What about commissions. Do you think they will take a bite out of your gains. and what about the distinct possibility that all five tank and for more than one or two days in a row. That would definitely change your mathematics. do you think the chances (percentages) of them going down are higher or lower than them going up.


[QUOTE=Phoenix7;111510]Good morning fellow travelers , today I would like to list 5 stocks that have reached their 52 Week Highs Yesterday 12/7/11.

1. ASPS
2. LQDT
3. MIND
4. SMP
5. SPSC

I am experimenting with a trading method that will set DUAL orders which state that ONE will CANCEL the other. This can be done with TDAmeritrade and most other brokers.
First you will put in your BUY order , and AFTER the stock is purchased immediately go in and set a SELL LIMIT order which is 8% ABOVE your buy price, and SELL STOP order if the stock drops 5% BELOW your purchase price .
For example for a $10 stock simply multiply by 1.08 to get your 8% SELL LIMIT Price of $10.80, and then set your 5% SELL STOP order for $9.50. To calculate the SELL STOP order merely multiply your stock purchase price by .95 to get the $9.50.

If 2 stocks rise you will make 16% , and if the other 3 stocks drop 5% you will lose 15% still having a net gain of 1%
Yes a small win , BUT NOT A LOSS!
Now consider the possibility where 3 stocks rise a 24% gain and 2 stocks suffer a 10% loss.....that still gives you an AMAZING 14% gain .

Not a bad way to protect yourself from dramatic losses![/QUOT

[skiracer]

[QUOTE=skiracer;111514]What about commissions. Do you think they will take a bite out of your gains. and what about the distinct possibility that all five tank and for more than one or two days in a row. That would definitely change your mathematics. do you think the chances (percentages) of them going down are higher or lower than them going up.
and do you buy the same quantities of each. and the price of each stock definitely plays a significant part in the equation, as 5 % of a higher priced stock is a bigger loss than that of a cheaper stock and visa versa on the gain side. today you would have had 3 winners for a total of +.99 and 1 loser for a total loss of $1.54 or a loss for the day of -$.55.
lqdt was a loss of -.041% which was the closest one to stopping out. the others all were well within not triggering an exit yet and were on the + side but way under +8% exit.
its good to think of ways to make money and systems that might work out but I think this one will tie up your capital and the risk vs reward is just not there. not for me anyway.

Good morning fellow travelers , today I would like to list 5 stocks that have reached their 52 Week Highs Yesterday 12/7/11.

1. ASPS
2. LQDT
3. MIND
4. SMP
5. SPSC

I am experimenting with a trading method that will set DUAL orders which state that ONE will CANCEL the other. This can be done with TDAmeritrade and most other brokers.
First you will put in your BUY order , and AFTER the stock is purchased immediately go in and set a SELL LIMIT order which is 8% ABOVE your buy price, and SELL STOP order if the stock drops 5% BELOW your purchase price .
For example for a $10 stock simply multiply by 1.08 to get your 8% SELL LIMIT Price of $10.80, and then set your 5% SELL STOP order for $9.50. To calculate the SELL STOP order merely multiply your stock purchase price by .95 to get the $9.50.

If 2 stocks rise you will make 16% , and if the other 3 stocks drop 5% you will lose 15% still having a net gain of 1%
Yes a small win , BUT NOT A LOSS!
Now consider the possibility where 3 stocks rise a 24% gain and 2 stocks suffer a 10% loss.....that still gives you an AMAZING 14% gain .

Not a bad way to protect yourself from dramatic losses![/QUOT

[Louetta]

... snip ...

Now consider the possibility where 3 stocks rise a 24% gain and 2 stocks suffer a 10% loss.....that still gives you an AMAZING 14% gain .

Not a bad way to protect yourself from dramatic losses!

Actually it's less than a 3% gain.

You invest $100 in each of 5 stocks for a total of $500. Three go up 8% or $8 each on the $100 investment for a gain of $24 total. Two go down 5% giving a loss of $5 each total $10. So you net $14 on a $500 investment, just under 3%.

[TraderPlayerPerson]

I've had good results trading with similar profit targets before. From studying my transactions, I found only 20% of trades were winners. 10% were losers, and 70% were about breakeven. My tip would be to sometimes get out when you sense something is wrong, even if your 5% stop hasn't been hit yet. Good luck

[Phoenix7]

[QUOTE=skiracer;111514]What about commissions. Do you think they will take a bite out of your gains. and what about the distinct possibility that all five tank and for more than one or two days in a row. That would definitely change your mathematics. do you think the chances (percentages) of them going down are higher or lower than them going up.

Good morning fellow travelers , today I would like to list 5 stocks that have reached their 52 Week Highs Yesterday 12/7/11.

1. ASPS
2. LQDT
3. MIND
4. SMP
5. SPSC

I am experimenting with a trading method that will set DUAL orders which state that ONE will CANCEL the other. This can be done with TDAmeritrade and most other brokers.
First you will put in your BUY order , and AFTER the stock is purchased immediately go in and set a SELL LIMIT order which is 8% ABOVE your buy price, and SELL STOP order if the stock drops 5% BELOW your purchase price .
For example for a $10 stock simply multiply by 1.08 to get your 8% SELL LIMIT Price of $10.80, and then set your 5% SELL STOP order for $9.50. To calculate the SELL STOP order merely multiply your stock purchase price by .95 to get the $9.50.

If 2 stocks rise you will make 16% , and if the other 3 stocks drop 5% you will lose 15% still having a net gain of 1%
Yes a small win , BUT NOT A LOSS!
Now consider the possibility where 3 stocks rise a 24% gain and 2 stocks suffer a 10% loss.....that still gives you an AMAZING 14% gain .

Not a bad way to protect yourself from dramatic losses![/QUOT

Yes commissions always an important factor, but simply include them in your cost ....suppose 100 shares cost 1000 PLUS 10 commission. The cost per share including commission would now be $1010 for the 100 Shares or $10.10 per share , MULTIPLY by 1.08 to give you a per share price plus commissions of approximately $10.91 ..that would now be your Sell Limit price ......simple. Do a similar process to calculate your stop loss which would then also include commissions.
Trying to predict what will actually happen is impossible , but we are just trying to put the odds in your favor .

[Phoenix7]

Actually it's less than a 3% gain.

You invest $100 in each of 5 stocks for a total of $500. Three go up 8% or $8 each on the $100 investment for a gain of $24 total. Two go down 5% giving a loss of $5 each total $10. So you net $14 on a $500 investment, just under 3%.

Louetta you are correct.

[Phoenix7]

I keep looking at LQDT but the P/E really worries me as a long-term hold. Have you noticed though that, almost every day, it's cheap at closing and peaks shortly after the bell rings in the morning. Day trading opportunity?

Ed as Mr Market says these are crazy times .....now if the European issue is not satisfactory to most of the parties involved ...TOMORROW could be another DOWN day .....but if the situation improves..... tomorrow could be a huge UP day ?

[Phoenix7]

The above "SYSTEM" where you sell at 8% gain , or SELL if the stock drops at a 5 percent LOSS should be used with approximately $2500 or more per trade to make it practical. You should also look for the "LOWEST" fees per trade to keep your profits up. TD Ameritrade charges only $7 per trade if you ask them to match the Scott Price of $7 , normally they do charge 10 bucks per trade.

1. DPZ Domino's Pizza AT A 52 WEEK HIGH
2. ASPS Altisource Portfolio Solutions AT A 52 WEEK HIGH

3. ALLT Allot communications This is a Nevellier Story Stock Here is the headline for the stock, "Nevellier's Stock That Will Gain 407% from the "Christmas Internet Outage" Here is the LINK http://stockgumshoe.com/reviews/emer...ternet-outage/
Will this really happen? .....your guess is as good as mine, but the chart looks good.

LATE ADDITION: PKD Possibly an easy 8% from here?