Troy asked 6 years ago Good evening Pat,
I've heard you mention in a video or two that we want to key on stocks that will move, and not including some stocks on a focus/Key List that, although the may look constructive, don't move a lot. I am wondering what parameters you use to narrow in on stocks that have the potential to move and weed out those with less potential.
Are you focusing mostly on previous price movement (price gain vs. time), or including in scans some metrics such as float (keeping it smaller), % float short, short interest, etc., with the idea that smaller float stocks tend to have the potential for big moves more quickly (both up and down for that matter). Or a little of all of these things?
Thanks for your hard work and all that you share. It is surely appreciated!
Troy
Pat Walker Staff answered 6 years ago Good evening Troy,
Great to hear from you! You ask a very good question. And your statement is correct! I study the past to see if it's made a 'move' in the past. If not, I don't post it. I hating tying emotional capital and financial capital in something that just grinds. I use to really focus on the float. But with the numbers of entities involved in the markets today I have found it's better to avoid really thin stocks. Too many games. And the elimination of the uptick rule can cause flash crashes with thin stocks.
Years ago, back in the early 90's we made a lot of $$$ trading thin AMEX stocks. You may think it's crazy, many of them traded less than 10k volume/day.
Markets have changed. So I have adapted to the current environment.
I hope this helps, Troy. I truly want to educate folks on the markets and have that translate into $$$ for them. Speed up that learning curve.
Have a great night! I Thank You for being part of the team!
Sincerely,
Pat
Pat Walker Staff answered 6 years ago Good morning Troy!
Thank you for kind words of encouragement! I looked at different price-volatility tools and find it to be too limiting at times. For me, thru 31 years of studying charts, I can look at the chart, previous moves, consolidation patterns, price/volume relationships and can "see" where a stocks may go. Of course, that's the beauty of the 8 ema. Let it trend til it stops. As far as chart patterns, I really avoid "wide & loose" patterns. No rhythm there.
I hope this helps. Thank you for kind words and THANK YOU for being part of the team!
Sincerely,
Pat
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Followup from Troy via email…
Do you see any value in adding beta or price volatility parameters as part of your screens to help cull down any resultant lists?
Also, I should have added in my initial question, thanks to both you and Owen for your hard work. I know Owen is hard at work behind the scenes also and has been a big help.
Y'all have a great day!
Troy