Miscellaneous Trading Strategies (not specific)

Exerpts from Hot Trading Secrets by Christoph Amberger

1. Profit from Cyclicality

-Research on yearly price cycles in stocks

- January Effect -> small caps price up
- Holidays -> comsumer spending increase
- May and June -> Job Agencies
- Back to School Seasonal Profits -> school stocks
- Conference seasons -> Companies' price affected by conference news
- etc


2. Forward Earning Forecaster

Step 1. Get rid of huge companies -> over $2 billion market cap
Step 2. Get rid of fully valued stocks -> P/E
Step 3. Get rid of stocks that ain't growing fast enough -> grown earnings by 25% or more for at least 3 years


3. Insider Trading

- Look out for increase in volume with no news whatsoever.
- Look out for Block trades.
- Look out for new products, patents pending, special licensing agreements or FDA approvals, negotiation concerning major deals.


4. The Doji Master

Step 1. Put Call Ratio >4
Step 2. Check falling stock has Candle Bullish Reversal signal


5. IPO

Red Zone 1 (Launch date to +45 days)
- 10% of IPO share available to retail investors
- Strong Demand + Limited Volume -> increase price
- SEC permits release of mergers, acquistions -> increase price

Red Zone 2 (4 months after IPO)
- people anticipate share dump and sell-> decrease price
- 6 months after IPO, SEC permits insider to sell share (Lockup period ends) -> share dump -> decrease price

Red Zone 3 (18-24 months after IPO)
- Depends on earnings -> become value play


6. Tri-Directional Indicator

- Buy when 3 EMV (20, 35, 50 days) moving upwards, equidistant and parallel
- Sell half when EMVs start closing together
- Sell all when price drop through 20 and 35 EMV
- If stock hit by bad news and drop through all 3 EMV, wait for 3 days for a bounce and sell at 10.30 the morning of 3rd day.
- If no bounce, sell anyway.
- Look out for VIX spikes and plummets.


7. Money Flow Matrix

- OBV
- Advance-Decline line (A/D Line)
- Stochastics
- Momentum Indicator
- Money Flow
- Volume

- watch for divergence in Price and Stochastic and Momentum indicators