on any given day you can make a few grand, page-48

hi kse

great post, seems as though you are switched on.

best wishes with your trading..
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Subject: re: on any given day you can make a few grand
Stock Code: ASX - ASX LIMITED
Posted: 26/08/07 9:28:47 AM Hotcopper Radio: ASX on BoardRoom Radio
Posted By: kse3137 Views: 60
Post #: 192358 (In Reply to msg #192350 from sandybeachs) Sentiment: None
IP: 61.9.xxx.xxx Voluntary Disclosure: No Stock Held
SandyBeaches (and others),

I agree with your comments on sentiment or momentum trading.
Who cares what the company does providing the price is going up.
Just get on for the ride and make some money.

Most SPP rises are preceded by an increase in volume. Check any stock's history.
Smart buyers, instos, insiders, etc, may try to contain the price but they cannot contain the volume.

DYL comes to mind back in early October last year, huge volume but price contained at 14.5 cents.
A few days later a trading halt and then the SPP hit 48.5 cents within 3 weeks.
Made a lot of money out of that one.

And there are plenty more examples of volume surges preceding SPP gains.
In fact my entire trading is based on volume surges.
The top end of town know what's happening in a company long before we Hotcopperites do.

As for the fundamentals, management and all the other stuff that ultimately decides the companies future.
I will do that research if I decide to increase my holding in the stock.
I have pyramid bought countless stocks on a second volume surge which has confirmed the price direction.

It has been my experience that a surge in volume doesn't just happen for no reason.
Most of the time it is followed closely by a news announcement.
This can be the same day, the next day or up to two weeks later.

Of course there is always the old pump and dump but they are few and far between.
Tight stops on initial entry will always minimise losses if a pump and dump is in play.

A surge in volume with a quick check of the chart are my two main tools when trading.
And I do say "trading".
If I decide to pyramid buy I will then do my research and shift my focus to investing.
That may be short, medium or long term depending on the company, its assets, its management, etc.

I use TurboTrader which continuously scans the entire market and throws up stocks trading with volume.
It gave me CVI when the market was being hammered.
I took some nice profit out of IMI.
I have tried other "live" services but they are not automated and not set and forget.

So for me, sentiment, volume, momentum is the primary reason I first enter the trade.
I may buy more, I may day trade, I may pyramid buy and switch to investing.

In the end its all volume, which is supply and demand, which is SPP rise, which is profit.

Cheers