Trading ranging stocks

brerwallabi · 9 December 2005

I quite like to find some stocks that are ranging which means I follow sometimes a very limited amount of stocks in this instance volume does matter a great deal to me its the bottom thats important and when that bottam gets hit again I buy, my success rate this way I have measured at 64.3 win to 35.7 loss it does mean that sometimes I am sitting on the fence waiting, so some capital is not really earning. Does anyone else trade this way and if so what success are you enjoying? The result I have posted is from 1st July 2005 to 30 Nov 2005. I must mention this is not my entire trading strategy but 40% of capital is devoted to this method but not all in necessarily at the same time.

mit · 9 December 2005

brerwallabi said:
I quite like to find some stocks that are ranging which means I follow sometimes a very limited amount of stocks in this instance volume does matter a great deal to me its the bottom thats important and when that bottam gets hit again I buy, my success rate this way I have measured at 64.3 win to 35.7 loss it does mean that sometimes I am sitting on the fence waiting, so some capital is not really earning. Does anyone else trade this way and if so what success are you enjoying? The result I have posted is from 1st July 2005 to 30 Nov 2005. I must mention this is not my entire trading strategy but 40% of capital is devoted to this method but not all in necessarily at the same time.

How do you decide what the bottom is? I have played with ORG a few times but I usually wait until it starts turning up again

brerwallabi · 9 December 2005

A third hit on resistance is what I have been using as a starting off point with a tight stop, profit taken early, sometimes to early but my dscision was already made when I entered. ORG would not be one I would chose as it trades around $7.00, I always use companies that trade below $1.00..The thing I have not been able to do well is to recognise when a stock will finally break out of a trading range I have usually sold by then lol.
So far so good.

RichKid · 10 December 2005

Brer,
I like trading similar patterns too but haven't got a set methodology like you (or stats), see this thread for some old comments (below). I do prefer consolidations after a strong trend (ie a pause and ranging before continuing the larger trend). AUN is the most relevant trade I'm in atm, I'd trade it as breakout too if it occurs.
https://www.aussiestockforums.com/forums/showthread.php?t=1585&highlight=ranging+bmx

Trading ranging stocks

brerwallabi

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mit

brerwallabi

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RichKid

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