Bob

Here he is :-)

New Zealand Top Sites

Tablets and Mobiles Australia
Solar Panels
House for sale Realty
Love in New Zealand
Boilers and Burners

Easy To Read Stock Charts Article

Canadian Stock Alerts - The Oversold Stock
By Mike Perras

My main attraction to any stock these days is purely in the volume of shares it trades that day. It's not complicated, as it tells me that very clearly there is serious trading activity in that one stock.

There is nothing worse than an illiquid stock, a stock that doesn't trade very many shares or some days doesn't trade at all. I avoid these at all costs as it becomes impossible to exit that stock easily. The only exception to the volume rule is a speculation play that I am prepared to wait on.

So what are Canadian Stock Alerts, for the most part they are only stocks that trade with strong volume, I am even more interested in stocks that trade with unusual volume, meaning far more shares being traded today than their normal daily average. When that happens, something serious is going on, and a great many new investors are also paying attention.

But sometimes you'll see a stock trading with an unusually high volume of shares and the stock is actually going down. Remember great volume means something, and Canadian Stock Alerts is only interested in volume. In many cases that stock that is going down, is actually just being pulled back or in fact oversold.

As I'm sure you'll agree, many times this has nothing to do with that stock itself. When the entire market pulls back it usually pulls everything back with it, especially if the previous day or two were both up days.

Example: On Monday a stock goes from $1.00 to $1.15 and on Tuesday it surges higher to close at $1.29, you know that sooner or later it'll give something back, after all it just climbed 30% in just two days. On Wednesday the entire market pulls back and our stock falls from $1.29 to $1.16 and it does so on huge trading volume. This becomes a huge alert for me personally.

Even Warren Buffet invests this way, buying certain stocks that have fallen out of favor, but are still value oriented stocks. It always makes sense to consider buying a value stock on the way down, as their value will rarely leave down for long.

It is the nature of the markets at work generally, the weak hands get out and everyone else is taking some profits off the table. This is as common as it gets.

That said, on Wednesday I'll usually find many Canadian Stock Alerts that can be great buying opportunities. Remember the stock isn't going down on bad news, it went down with the rest of the market. There's a huge difference here, the stock simply got sideswiped by the entire downward trend of the market.

Watching the heavy volume on the way down, you can usually see a levelling off point. Watch the bids on Level II and you'll see where there is a huge level of buying support on the bid side. That becomes our entry point.

These pull backs look and feel pretty dramatic, their rebound can look just as dramatic. Buying in at $1.16 and watching it climb back to $1.26 on a bad market day is not unusual at all. Now imagine that you bought 5000 shares, you could have netted $500.00 profit (minus commission) in one day.

Again, a volume trend is what we all need to pay attention to.

Mike Perras manages the Canadian Stock Alerts blog. While these alerts are never meant as a recommendation to buy a particular stock, they are nonetheless a heads up or an alert to a certain potential positive trend.

Canadian Stock Alerts follows one major rule, follow the volume! When trading volume in any stock is higher than usual, a trend has been established. While the stock may go higher or lower is in fact irrelevant. Stocks that go higher, always pull back. Stocks that go lower are often oversold. In both cases alerts may be issued.

Mr. Perras always recommends trading on paper first before following any new investing strategy. Try it out, without using real money. When you can see first hand that this style of investing works and satisfies your own risk tolerance level, only then should you consider it a strategy you want to work with.

Canadian Stock Alerts does not receive any compensation whatsoever by any of the companies it issues alerts for. Alerts are issued in real time during market hours and follow the "higher than usual volume" rule always. One's own due diligence is always recommended when it comes to any kind of investing.

Mike Perras - EzineArticles Expert Author

Bob image 1

Bob image 2

Related Easy To Read Stock Charts Videos


Easy To Read Stock Charts News


Roku's Stock Is Another Insanely Valued Stock

27 Nov 2020 at 3:25pm  Roku's stock has soared in 2020 based on the stay-home trade. The stock trades for nearly double Netflix. The technical chart is showing major divergence, suggesting trouble lies ahead. Roku (ROKU) is ...

Read more...


Square's Stock Valuation Is Insane

24 Nov 2020 at 5:03pm  Square is the most expensive stock in its peer group. The stock is also very expensive when compared to its own historical trends.

Read more...


Aphria Stock Is A Wild One But it Will Be Higher Next Year

18 Nov 2020 at 1:31pm  Stock Market News, Stock Advice & Trading Tips Cannabis stocks in general tend to move very fast in both directions. This ...

Read more...


Make Smarter Investment Decisions With This Candlestick Analysis Training Bundle

14 Nov 2020 at 9:33am  This book gives you the essential guide for easy-to-follow tips and strategies ... You'll study how to properly analyze candlestick charts for stocks, forex, futures, and more, so you'll know ...

Read more...


Luckin Stock Can Grind Its Way Out of This Hole

13 Nov 2020 at 8:51am  This is no forgiving out-and-out fraud but that doesn't mean we can't trade Luckin stock. There are opportunities even for this bad boy.

Read more...


Read Stock Charts Like a Pro: The ?Death Cross? and Other Must-Know Signs

6 Nov 2020 at 11:47am  Some adherents to the idea of ?technical trading,? have made it their goal to closely follow stock charts to suss out some basic patterns that can help pinpoint those moments before a stock is ...

Read more...


Apple In 5 Charts

28 Oct 2020 at 9:20am  Sure, the occasional unexpected headline might distract and buffet a stock every now and then ... Data source: Apple quarterly reports. Chart by author. Of course, Europe and the Americas are ...

Read more...


Easy To Read Stock Charts Links

Permalink: | Copyright © 2020 Bob All Rights Reserved

Powered by SiteBuilder Elite