Saturday, November 05, 2005

Short-Term Stock Trading Ideas

Based on my private e-mail, there is a lot interest in successful stock trading. I can tell you until the cows come home about insider buying, but nothing I say is going to ring as true as the numbers I am about to provide below. These are all trades generated last week on insider-buying and nothing else. All entry prices are based on the close of the day the trade was published to the public on the SEC web site. They were highlighted by one of my favored services, Insider Cow ($25/mo). No one has to day-trade nor give up a day job to have taken these trades.

Date.....Stock.....Entry.....Current.....Return


10/31....SYK.......41.07.....43.07..........4.8%
10/31....QSC........0.71......1.02.........43.6%
10/31....NXTY......12.84.....13.54..........5.4%
10/31....EUBK......10.42.....11.94.........14.6%

The average return last week for these four trades was 17.1%. That's not to say you could exactly duplicate these trades, although I see no reason why not. Nor is it to say that you will always get these kinds of returns, although after a year of insider-trading I am convinced that it is one of the easiest and most consistently profitable short term trading methodologies I have ever come across.


A

5 comments:

Ronny said...

Allan,I totally agree with you.I-buys are the only short term strategy that I have seen work on a consisitent basis.My trading account is up 16% since Sept. 16 tading nothing but I-buys.
Thanks for posting this strategy,Ron

Anonymous said...

Hi Allan,
Just following up on a question I had posted a few days ago. My question was in regard to the Goog chart that you had placed on your blog in MAY. There, you showed three indicators, RSI, MA, & CCI. My question is, were these 3 indicators the culmination of work that brought you success in your "short term trading" when you began in 2002 or in the fall of 2004? I hope this question is clear.
Best Regards,
FRank D.

Allan said...

Frank, No, I never relied much upon indicators when I was short-term position trading. At that time I was using a program called Advanced GET and using pattern recognition techniques that revolved around Elliott Wave theory. It worked well during a bull market, but I suspect anything would have worked well in those years.

A

Arian said...

i like secform4.com and canadianinsider.com free, no advanced search features... so u r gonna have to look at them listings old school style, but they do offer a quick penny buys link. Anyway i was in NNVC from .10 and i got a new play myself.
i've listed it here (please remove if you yourself feel uncomfortable with other people putting up 'plays')...
http://www.allstocks.com/stockmessageboard/cgi-bin/ultimatebb.cgi/ubb/get_topic/f/8/t/017238.html?#000001

bleh Alan was pretty smart to find NNVC august 31st, i found it around same time and kept it quiet for a few days hehe... Allan did u do the same as me and bascially google the DEMON-HELLSHOLE out of the Web to find this play :)...
i kept it secret myself but had to mention it online or i didnt think it would move. thats what i like about blogs, u can get out your finds out faster, but it also increases pump and dumps, so u always have to make sure that everything the pumper is saying is based on facts and not distorted which i feel u have kept without over-over-hyping the avian flu. u saw a play and cashed in on it while making other people some dough too. if only there were more Mad Cow and SARS companies back in the day hehe.
btw i do like insider trades also, they always do suck at timing though (maybe cause they have to make their trades look like it isn't traded on pure inside info around earnings/PR time hehe), so i'll wait till it falls 4/5%. Do you have a strategy for combating that, or wait and hold with stop limits?

Also, do u focus on small caps only? i hate touching anything over 5 bucks personally :).


Arian

Allan said...

Adrian, thanks for your comments. As for insider buys, I mostly daytrade them, get in as soon as they are posted at SEC site and look to take a piece of the immediate pop as this infomration is diseminated to the markets. My other strategy is one I recommend to most folks, buying some shares that first day and holding for a week or longer. This methodlogy does not require constant vigilance and all the angst that goes along with it.

Also, do u focus on small caps only? i hate touching anything over 5 bucks personally

My focus has nothing to do with the price or market cap of the stock. That said, there is little doubt in my mnd that the leverage inherent in smaller caps and lower priced stocks, i.e. under $15/share, is well worth an overemphasis in any trading system.

A