Profiting From TradingMarkets: The Daily Quest For Volatility
Every Wednesday night Larry
Connors and I write a column highlighting how you can use the site to help your
trading. Feel free to e-mail us if you have any questions regarding this column
or anything else about trading.
Brice
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It is next to impossible
to make money in stocks that aren’t moving. As we saw from January to
July 2004, there’s been little volatility in the marketplace. But there is
volatility in specific stocks.
Finding such stocks is easy with TradingMarkets
Trading Where The Action Is” list, found on our
Indicators page. To identify these stocks, TradingMarkets uses an aggressive
short-term historical volatility reading to pinpoint the stocks that have been
the most volatile over the most recent past. Let’s take a look at some stocks
that appear on this list at press time::
Take a look at Taser International
(
TASR |
Quote |
Chart |
News |
PowerRating),
a stock which has been popular among traders recently:
You can see why, as its range is quite wide.
When a stock doubles in price, as Palm One
(
PLMO |
Quote |
Chart |
News |
PowerRating)
recently has, it quickly becomes a favorite with traders…
And finally, take a look at this close-up of
Infospace
(
INSP |
Quote |
Chart |
News |
PowerRating).. Note especially wide-range bars. Now that’s a
great stock for a trader to be involved with!
You can begin looking at setups in these stocks,
knowing that there will plenty of potential opportunities for you to trade each
day.
Part of the reason traders made so much money in
1998-1999 is because there was high volatility in the stock market. That same
volatility exists every day — you just have to pinpoint it. This is why
you should visit the “Trading
Where The Action Is” list every day.
Also, for further reading on using this
indicator, please see Dave Landry’s lesson,
Capturing Sharp Moves Using Volatility And Structure, found in
TM University. And if you have questions, please please feel free to e-mail
us at lconnors@tradingmarkets.com
or brice@tradingmarkets.com.
Larry Connors and Brice Wightman
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