Well, that sucks the big one, especially if you're in it. The ramifications are horrible.
If I have all this straight: if you haven't purchased the stock but want to, and if it's on the list, there's no pressing need to check the list to see if the stock you want to trade is on it, for if it's on the restricted list, any order you place simply won't go through, as to be on the list isn't to say it's subject to not later being traded but instead it means that you're actually restricted now from trading it; hence, the name.
I completely agree. And I almost forgot to post the link the Scottrade restriction list (although it is a little outdated as it changes day to day). This is a link to a blog with a somewhat complete list, although they left out a few columns. I would repost the list myself from my Scottrade account, but they don't let you copy/past (image format).
Scottrade Clearing Restrictions - Restricted Stocks - Scottrade
As a general perspective, I think it's wiser to base a trade on a blend of both FA and TA. For example, if two companies have great technicals, then there's a place for having the knowledge (that one is fundamentally poor and the other is fundamentally sound) in our trading decisions.
I'm still working the kinks out of a new trading strategy I've been putting together, and it just so happens that I haven't had much need (yet) to look at the income statements, balance sheets, and cash flow statements of individual companies.
Do you spend much time on the EDGAR database?
Exactly, it is always best to cover all the bases, both technical and fundamental analyses are best kept together and considered on even ground just to be safe. One fundamental calculation I always tend to break out is the true value calculation. It really shows if the stock is too inflated because of speculation and hopefully undervalued in order to make a relatively safe long term investment.
As to the EDGAR database, I have not really used it that much. What I use in its place for vital statistics is IBD (investors business daily). If you have the money for the e-subscription, I would recommend this because they give you this neat thing called a "stock checkup" that does all the calculations for you and gives you an A to F rating. However, I should note that usually the ratings show that the time to buy is too late, but you can catch the ones climbing in rank. They also have a "stocks on the move" list on your subscription homepage that shows which stocks are doing really good and other which are doing very bad (updated every 15 minutes). And if you like to have a newspaper delivered about stocks, futures, that kind of thing, they have an option for the e-subscription and the weekly paper. I really enjoy it because they have the chart printouts of the stocks they like, so you can mark them up at home and do your own technical analysis. OOOH, and I almost forgot, one of the most useful things they have is the IBD top 100 list, which is basically the top performers in their lists based off their own specific trackers. Very VERY useful stuff.
If you do want to try IBD out, I would also suggest that (if you do want to get the paper and the e-subscription), call IBD and talk to a rep rather than just ordering over the internet. Tell them that you really wish you could buy the paper/subscription but you don't have enough money (cry poor but very sad you cannot try their fantastic
I think I may not have explained myself well enough.
I'm speaking exclusively long term. For example, let's suppose Ann started investing exactly 20 years ago, let's suppose she invested exactly 15% of her annual gross income each year, and let's suppose she invested exclusively in an index fund that matched the S&P 500.
Now, let's suppose you did exactly as she did except that you didn't invest in what she invested in. Instead, you decided to day trade. Well, it's now been 20 years. We can calculate her average ROI, and we can calculate your average ROI, and the question is, who did better?
In at least 90% of the cases, it will be Ann. If a person does not invest exclusively in an index fund, then there will be days when he or she done better, and there will be days when he or she done worst, but over a long period of time, the people who had chosen the index will find that they are the ones that fared better than those that set out to do better than the market.
What side of the fence am I on? That depends. If you ask me how to invest for retirement, then I'm going to set you on a path that is very different than if you ask me how to turn $250 into $250,000 in three years ... if ya see what I mean.
I'm a huge fan of rule-based trading. Trailing stops is great in theory, but that pivotal point between making a profit and suffering a loss is nerve wracking.
Definitely. Trailing stops can really screw you over, especially because the action takes place way after the fact that the stock is going down, so you would be lucky to stay near you 10% trailing stop.
Me too! As soon as I read that, I was like, man, you know what you're doing! I employ a similar strategy (or maybe I should say it's incorporated into my strategy-in-the-making) where I am trading in multiples of 7 cents. For example, if I get in at .21, then if I get out shortly thereafter, then I am out at .28, which so happens to be before those round .30 limits lie in wait.
This isn't exactly what you're talking about, but it's similar. You apparently have definite sell targets where you expect a sudden dip, and to avoid the lack of liquidity that's going to present its ugly head just after the climax, you ease off the greed pedal and pull the trigger point back so you are able to sell just before the top is reached.
Awesome! I see what you are talking about with your strategy! But just remember, the most important thing to keep in mind when you are setting sell and buy points, be sure to base it on the rounded price of the stock itself. So if XYZ is trading at 2.15 and there is a lot of positive volume on the stock (and it has a technical readout of resistance at $2.50), make damn sure you set your sell order at least 5 cents below that, because as I am sure you have experienced, once a stock hits resistance and a rounded number, orders take FOREVER to fill and you end up losing more than if you had sold a little earlier because all those guys that got ahead of you sell bringing the stock lower in any case.
Not interesting? Are you kidding me!
Here is another very useful tip for trading (long term and short term, whichever have you). There is a strategy called MACD (pronounced mack-dee). What this means is that you take a given set of moving averages (well, technically it should be the 26/12 or the 50/200 day moving average). Now it usually happens that when the 26 moving average climbs above the 12 day moving average (for example), there, it is usually the case that that signals an uptrend (sometimes huge uptrend). When the 26 passes below the 12, then it is a signal of a sell off. There is not any real rhyme or reason to it, but major investors use this strategy, so you are able to piggy back off of it, you can win big.
Great tutorial here;
Moving Average Convergence/Divergence (MACD) - ChartSchool - StockCharts.com
Also, if you are looking at any chart, always use Bollinger bands in your analysis. Bollingers tell you within 2 standard deviations (literally giving you a 96% accurate prediction) that the stock can go within a certain margin.
Better yet, check out today's current chart of Ford (F).
Wait, you don't do your own screens and scans? Yeah, PM me; I'll take a peek.
I do my own screen on e-trade most of the time. But I use a lot