Daytrading FINANCIAL BEAR 3X (NYSE: FAZ)
Posted on December 11th, 2008
Written by Richard
Posted in: N/A (old archives)
Those stocktwits seem to have a one-track mind. I was excited to see a new ticker at the top of their discussion list, because that’s how I pick the stock I feature in a totally unbiased way. For a long time they’ve been sticking with SKF, so I thought FAZ would be a nice change… but it’s just another freaking inverse finance ETF… only with more leverage. Oh well…
The simple stock system, made up of just a few eotpro indicators, picked a single entry on Financial Bear 3X (NYSE: FAZ), and not a bad one at all:
It did pull back on you before running, but even with the tightest of stops you’d still be fine, as it didn’t even penetrate the low of the entry candle. A pretty smooth ride up after that. Sweet!
Incidentally, there is a table of volume bar settings that I use for these. I take the 30-day avg volume, and use the overview settings for all these stock charts. If you don’t want to bother looking it up, all you have to do is take the 30-day avg volume, divide it by 100, and pick the next highest fib number. Let’s take today’s stock as an example. FAZ is so new it hasn’t even been trading 30 days, so I just looked at the last couple days of volume… about 3 million shares or so. 3,000,000 / 100 = 30,000. So, I went with the next highest fib number of 46,368 share bars. Couldn’t be easier!
The indicator picks the entries mechanically, and I use the same settings on all stocks, and I always show you the whole day on the featured stock. So, no funny-business or cherry-picking. Just sweet, sweet profits.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.