*Not financial advice; gentlemen this goes without saying but let me say that anyways haha. Let us explore ideas together and come up with solutions for many different things in life. :*
Dearest readers, this bear market with are in is getting kind of serious- if you are invested which many people are. If you are trading stocks, you ride the elevator down by shorting stocks, and you go long during bear market rallies, short squeezes and so on. Now, of course, for most of us who are busy during the day from early morning onwards, the best thing we could do is swing trade- analyze charts, set up buy orders for next day and then see how things go over one or more days- which can basically be categorized as swing trading. In my time studying how this should be done, I spent some time analyzing stock screeners as well, in particular on Tradingview. As someone who likes the idea of going long only (pun not intended but wow), I would like to share with you what my favorite stock screener filter is, why I like it, and what it can tell us about the current market.
So, without further ado, my favorite Tradingview stock screener filter is "Change from Open %" (percentage value, NOT dollar value). According to Tradingview's website, it is calculated as Change from Open % = (Change from Open / Open price of the current bar) * 100. Basically, it displays the percentage change of a stock's price from the open of the time period you specify. For me, I look at it at a 1 Day time frame. So, as soon as the market opens, if you sort your stock list by this filter, it will show you the change from market open and will keep moving up and down as the price goes up and down. Here is an example from today's session.
Dearest readers, this bear market with are in is getting kind of serious- if you are invested which many people are. If you are trading stocks, you ride the elevator down by shorting stocks, and you go long during bear market rallies, short squeezes and so on. Now, of course, for most of us who are busy during the day from early morning onwards, the best thing we could do is swing trade- analyze charts, set up buy orders for next day and then see how things go over one or more days- which can basically be categorized as swing trading. In my time studying how this should be done, I spent some time analyzing stock screeners as well, in particular on Tradingview. As someone who likes the idea of going long only (pun not intended but wow), I would like to share with you what my favorite stock screener filter is, why I like it, and what it can tell us about the current market.
So, without further ado, my favorite Tradingview stock screener filter is "Change from Open %" (percentage value, NOT dollar value). According to Tradingview's website, it is calculated as Change from Open % = (Change from Open / Open price of the current bar) * 100. Basically, it displays the percentage change of a stock's price from the open of the time period you specify. For me, I look at it at a 1 Day time frame. So, as soon as the market opens, if you sort your stock list by this filter, it will show you the change from market open and will keep moving up and down as the price goes up and down. Here is an example from today's session.
As you can see, the stocks popping up here made some crazy, crazy moves today in the 2-25 dollar range. SNTI was pretty sweet and then some, and especially for this one reason. Personally, I do not like stocks that begin with a huge gap; that worked during the height of COVID market recovery mania but I do not like it for the long term. So, I prefer that these stocks have a strong start with a great change from open percentage right from 9:30am, but most of the change is due to intraday action and not the gap itself. On the other hand, AERC started with a 20.87% market gap. Even though it did very well, I would not touch that one even if I was trading for real instead of paper trading. Another great stock of the day was IMVT; change from open percentage was 20.32% and the opening gap was only 3.03%. Now, if I had a chance to trade this full-time, I would probably screen on a daily time frame but look at a 5 minute chart and use something like a supertrend indicator giving a buy signal on the first candle to get in. Naturally, there are many more options out there to get entry signals but I feel the key is to go for signals early in the day.
Why do I like the list that this screener gives me (with auto refresh every 10 seconds or so or a violent manual refresh haha)? Well, I like it because it proves one important thing once again. Dearest readers, trading and investing are two completely, totally, utterly different worlds. What is more, the literature on trading is completely eclipsed by the literature on investing. In mainstream finance media, you will hear about the state of the markets mostly from investment gurus or bankers or analysts. If this was not the case, if trading literature, commentators and knowledge were unspoiled and free from the investing world, it would be common knowledge that trading stocks can result in tremendous gains that can be sustained overall with enough practice through bull and bear markets alike. We would be taught how to trade a lot better, there would be more good teachers and they would not talk about trading through an investing lens. In fact, I would not want to hear from any of the investing experts anything about the stocks that saw great gains today because all I would hear is how these stocks are one-offs, and that short-term trading results in this and that and the only realistic return to expect on an annual basis is the one that investing provides because of blah blah blah. Investing is one thing, trading is another and trading needs to do a lot of catching up if it wants to take up the correct amount of headspace in people's heads.
The biggest letdown of using the investment approach when in fact you are trading has been felt when the recovery super bull market turned bearish months ago. People piled into the stocks, buying the dip. That was well and good, but many people overindulged and overleveraged to get those sweet sweet shares at lower prices. So, they acted as traders, seeking to make money off of the upward momentum. However, they broke the slow and steady rule of investing where most of us regular people spread out the risk by investing low and slow over many years. So, what happened when the market turned bearish? Well, people who made moves like traders wanted to still act like investors so they held even if they had no more money to average down. Some, sadly, lost all of their gains and some of their principals by conflating investing and trading in this way and my heart goes out to them.
But of course, all is not lost here. As long as you are healthy and have time and energy to learn, I believe you can always do better in the future; the markets will be there. My only hope is that somewhere out there there is a killer recipe for the which trading knowledge ingredients to pick out there in the world and how to combine them not necessarily for huge gains, but for decent consistent ones. As for you, dearest readers- I hope you made some good money off of these bear market small cap runs that come up almost every other day or so. If you have, my hat's off to you.
Wishing everyone a happy hump day tomorrow and a great weekend- especially here in Canada for our Thanksgiving. Mwah!
Why do I like the list that this screener gives me (with auto refresh every 10 seconds or so or a violent manual refresh haha)? Well, I like it because it proves one important thing once again. Dearest readers, trading and investing are two completely, totally, utterly different worlds. What is more, the literature on trading is completely eclipsed by the literature on investing. In mainstream finance media, you will hear about the state of the markets mostly from investment gurus or bankers or analysts. If this was not the case, if trading literature, commentators and knowledge were unspoiled and free from the investing world, it would be common knowledge that trading stocks can result in tremendous gains that can be sustained overall with enough practice through bull and bear markets alike. We would be taught how to trade a lot better, there would be more good teachers and they would not talk about trading through an investing lens. In fact, I would not want to hear from any of the investing experts anything about the stocks that saw great gains today because all I would hear is how these stocks are one-offs, and that short-term trading results in this and that and the only realistic return to expect on an annual basis is the one that investing provides because of blah blah blah. Investing is one thing, trading is another and trading needs to do a lot of catching up if it wants to take up the correct amount of headspace in people's heads.
The biggest letdown of using the investment approach when in fact you are trading has been felt when the recovery super bull market turned bearish months ago. People piled into the stocks, buying the dip. That was well and good, but many people overindulged and overleveraged to get those sweet sweet shares at lower prices. So, they acted as traders, seeking to make money off of the upward momentum. However, they broke the slow and steady rule of investing where most of us regular people spread out the risk by investing low and slow over many years. So, what happened when the market turned bearish? Well, people who made moves like traders wanted to still act like investors so they held even if they had no more money to average down. Some, sadly, lost all of their gains and some of their principals by conflating investing and trading in this way and my heart goes out to them.
But of course, all is not lost here. As long as you are healthy and have time and energy to learn, I believe you can always do better in the future; the markets will be there. My only hope is that somewhere out there there is a killer recipe for the which trading knowledge ingredients to pick out there in the world and how to combine them not necessarily for huge gains, but for decent consistent ones. As for you, dearest readers- I hope you made some good money off of these bear market small cap runs that come up almost every other day or so. If you have, my hat's off to you.
Wishing everyone a happy hump day tomorrow and a great weekend- especially here in Canada for our Thanksgiving. Mwah!