stock system

I've figured out a short term trading system, after literally years of thinking about it. It has the following characteristics: all you need is a trading account, no (expensive) analytical software. Also, it looks like you only need to do a limited session on line, every day. No need to watch the market all day. Lastly, which is essentially required to fulfill item 2, it promises extreme returns, which means, also, that you only need to make a very small investment in any given trade ($10!) to get real returns. (I'm looking at a stock that should return 66x the investment in a period of weeks. Your $10 would turn into $660.)

If you have a Scottrade account (hint, hint), go to "quotes and research", then "stocks", then "screener". Select "price performance", and input price change greater than -100% and less than -75%, and 52 weeks. I got a list of 800 stocks. Select, "make this my default screen," then select "view ### results". You will get a list. Look for the "5 day change" column. Visually scan the results for numbers like "-90%".

I got one of those on the first page. Is it a tradeable stock? I think it is. It looks great. To see the chart, click the symbol. Then you have to choose "charts", and, once you're there, "my charts". But, if you haven't set up any charts, first, you have to do that. Choose "time range," and "20 years/ weekly". From the "lower indicater" menu, choose "volume". That's all you should need. Now, save that chart ("save chart settings, at the bottom"), using the name y20. Repeat this process for 2 year (y2), 4 year, and 6 month (m6) charts. (These seem to be my favorites.) If you feel like you want others, add those, too.

Because this scan is specifically a short term scan, the 6 month chart should mostly be all you need. Is it trading in some kind of active way? Are there a fair abundance of long bars? There will also be lots of no bar and short bar days, probably, but if that's almost all there is, maybe you should look for another stock. A look at a the 20y (max) chart will give you additional basis for making an assessment. You will probably see big (huge, in terms of price change) waves of active trading, followed by a long tail at very low prices. That's a good stock. If it's just a cloud of inactive days, ignore it.

Now you need to figure out how to place a trade. I'm going to do another post about today's first result. It took me about 5 minutes to find it, and, as I say, it looks great.

I'll put all these posts under the "short term 1" tag, which you can select (here, or at the bottom of any stock post) to look at all entries on this subject.