Questions for Mr Chart Guru (TheChartGuru)

[jacobnbr1]

what types of returns do you normally get from your oversold trades? when do expect to sell samc? that should give me an idea. thanx in advance for the info.

[eman316]

Also, do you have a stock to watch this week?
BTW, also look at my last post on your stock of the week from last week.

[TheChartGuru]

Jacob, I try to make 10%-25% every two days on average. Sometimes I have to wait longer like with Blockbuster. Other times I can make more like with WNDXQ, SAMC, MIVT, APDN and ALTI to name a few. The key is not to be greedy.

The Guru has spoken

[jacobnbr1]

ok. thanks for helping us with your picks. i am greatful for your posts and expert advise. i am going to watch them. do you have some type of scan that tells you what is oversold? and what key readings shoud we be looking for? (ie stochastics, roc, rsi, none wait for the move ect. ect. i am with broker scottrade and intraday charting is limited to my knowledge.
thank you.

[TheChartGuru]

Jacob, I have educated myself the last 3 years in the School of Hard Knocks, by reading many books, visiting many websites and by papertrading. I narrowed my indicators down to Linear Regression, Bollinger Bands, Relative Strength, Support/Resistance, Volume and the mighty Chinese Candlesticks. When I see a chart, I "read" what all these indicators are saying. I especialize in oversold stocks and I only plan to hold them from 1-3 days so I don't care what the company does or what it's fundamentals are. I also like stocks between .50 and $5. Everyone must learn their own style of trading. It's interesting to see "great" companies like DNA, INTC, MOT, GLW, MSO, COH, HD declining and "losers" like WNDXQ, BBI, SAMC, ALTI having huge gains. Why? They are cheap and oversold. This is my style. I live by the sword, I die by the sword.

The Guru has spoken

[optimus25]

Right on TCG. I like your style. I'm definitely going to adapt some of your trading style.

[TheChartGuru]

Mad Money only, Optimus, as you well know. I bought CDSS at the end of the day yesterday @.62. The others I have on my watch for entry this morning. BTW, I would not recommend anyone buying stocks before 10am, they are usually very volatile the first half hour of trading. Get to "feel" of where the stock is going before you buy it. Some stocks that shoot out of the gate tend to pullback around 10-10:15 am and those that tank early will reverse around the same time. You don't want to time the absolute bottom of a stock. It's too risky.

The Guru has spoken

[Woobie479]

TCG - What is your thoughts when is comes to buying your stocks. Do you buy at once or in several intervals to see if price comes back.

Thanks

[TheChartGuru]

I put all my stocks in a watchlist and follow them intraday. When they bottom out intraday I jump in. If the stock goes lower, I average down. Thats why I prefer to buy oversold stocks, because I don't have to buy the absolute bottom. The bottom is near when I buy, but if it goes down a little more then I buy some more. I.E, I had CPST on my watchlist for several days now, but nothing compelled me to buy it. I was waiting for the dip it took yesterday and, walla, the stock took off today. Already up over 10%. You also got to learn to "feel" a stock and that only comes with experience after watching the same stocks over and over again.

The Guru has spoken

[jacobnbr1]

hoku. this one has gapped up if you look on the chart. would a safe bet on the buy be where? it has skipping gap so where is the support at? thanx

[jacobnbr1]

hoku. this one has gapped up if you look on the chart. would a safe bet on the buy be where? it has skipping gap so where is the support at? thanx

looks like i should have bought this yesterday when it was down for a period of time but i was worried about the gap ups and most stocks fill the gaps. i wonder how many of them actually dont get filled and under what circumstances do the not get fadded.

[jacobnbr1]

hey mr guru: what size position should i be using on your trades? i know on larger positions it may be hard to get out of. i can use size from 2k to 10k on some. what is your words of advice in this matter... thanks

[TheChartGuru]

Jacob, everyone has different amounts of Mad Money to "trade" and it also depends on the stock. I like to invest $1000 at a time. On lower volume stocks like HBSC, I like to "play" with $200-400. I have $10,000 total to trade. I don't like to be 100% in stocks. I prefer to be 50-60% in stocks and the rest in cash in case I have to average down. I only hold for a few days , so I have a high turnover rate with cash always in the sideline. I like to use margin for more trading power. Hope this helped.

The Guru has spoken

[jm2552]

Some stocks that shoot out of the gate tend to pullback around 10-10:15 am

Have you ever bough right at the bell and then sold off a half-hour later? Or too risky?

[Woobie479]

TCG - I can't thank you enough for your time in answering our questions. Also in having full disclosure in your investments.

You are greatly appreciated here!

:)

[englishman26]

So by your methods you're making 10-25% a day?! Wow!

If you have $10,000 now, you must have started the year with about $100 on that profit scheme!

Anyway - this whole chart reading thing is very interesting but totally over my head! I understand the principle of buying oversold stock and selling after it pops up a bit. I'd certainly love to give it a try too. I guess in the end all of this mumbo-jumbo works because the market follows a certain psychological profile which it is possible to fit into. And in the end, the market is happy to have as many people as possible fit into that profile -as long as not everyone does!

I know what you mean about understanding how a stock trades - that's something I've been getting used to a bit - albeit with comapnies with good fundementals.

Anyway- I think I'll give VION a try with a $1000 of "mad money" sometime next week. Probably tuesday as I'm too busy to watch shares on monday.

Thanks for the education (or the beginning of one at least!)

[jacobnbr1]

mr chart guru: how many positions do you normally hold at one time of these oversold positions? thanks in advance. chris

[TheChartGuru]

Englishman, I wish that I could make 10% a day consistantly but I dont.
Sometimes I make very little or lose some, but sometimes, like with BCON today, I make a killing. I tend to overtrade sometimes and I'm not as patient as I should be. I do try to average 5-10% every couple of days or I may hold a good stock a few days and capatalize on a higher return.

I usually hold 3-4 stocks. Sometimes I bet the house on just one stock if I feel really sure about a stock, but that may be for a day trade. No way will I hold a stock over night with all my money riding on it :lol:

The Guru has spoken

[jacobnbr1]

what do you think of this one chart guru?