Friday, May 30th, 2008

"An Approach to Successful Stock Trading Combining Company
  Fundamentals with Chart Technicals"

Comments or Questions (TSM Service, Methodology, Performance or Your Success Stories Go Here - (


- Weekly TSM Qualified Stocks -

             Clearly, real day trading (sitting in front of your computer all day) is not for everyone.  Even so, high priced TSM stocks are good vehicles.  My key is to use relatively few and get to know their trading personality well.   Right now, for me that's POT, AAPL and MON.  All are above $100 a share, trade more than three million shares daily, and offer at least a 25 cent range in their respective 1-minute bars.  Here are a few of the trading edges that I've developed for AAPL:

            The TSM approach to day trading these stocks uses ~$100,000 to buy up to 1,000 shares then looks to win ~25 cents ($250) continuously after a high probability (CCI minimum below -140) is identified.  The 8-period moving average is the buy target.  The following two charts demonstrate the approach.  Seven trades were executed in the first when the CCI edge (green areas) presented itself to generate a $1,215 profit (~1% return on our $125,000 trading account) for the day.

                The next day, the same approach was used for POT in 10 trades to generate $1,593 (~1.3%  return on our $125,000 trading account) in profit.

            Finally, look at AAPL's chart on 04/15/08 and the opportunity that presented itself.


Similar data for AGU show that 95%+ of the time the high or low of the day is found in the 1st hour of trading.  The following chart tracks AGU through 59 trading days in March through May of 2008 shows the high (red H) and low (blue L) intraday trading points:

If you're going to day trade like this, get to know a few very liquid stocks well and develop trading edges.