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Stock Market Baseball. How hitting for singles, doubles, triples, and an occasional home run can win the Stock Market game. "You're always Trying to hit a Home Run". Who doesn't want to hit a home run? Can everybody hit a homerun ? Can you win a baseball game without hitting a home run?
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Stock Market Baseball How hitting for singles, doubles, triples, and an occasional home run can win the Stock Market game
"You're always Trying to hit a Home Run" • Who doesn't want to hit a home run? • Can everybody hit a homerun ? • Can you win a baseball game without hitting a home run? • How ? • By playing small ball and hitting for singles and doubles, and scoring runs.
How is baseball like trading stocks ? • Some players make a lot of money. • There is more than one way to score. • You can score without hitting a home run • You can score by hitting singles and doubles, consistently.
Scoring in Stock Market Baseball • 1% is a single • 2% is a double • 3% is a triple • 4% scores a run. • A five day trading week is a game. • A run a week earns you 4% on the amout traded with. • A run and single earns you 5% for the week
Scoring big on 1 % a day • 1% a day x 5 trading days = 5% per week • 5% a weekly game x 52 weeks = 260% return per year on 1% a day
How to look for your pitch • Don't swing at every pitch or stock • You only have to hit a single to make 1%. • Lots of stocks move up and down 1% each day. • Use technical analysis to find your stocks • Think of Technical Indicators like a baseball stat sheet, showing you what you need to know to make a play and score.
Technical Indicators to look for • Multiple increase in OBV, On Balance Volume, may indicate money flowing to the stock • How many shares are in the float ? Too many and the shares may not rise substantially on big news. Too little , and you may be trapped in a stock that no one wants if the trade goes against you. • Crossing patterns like the Golden Cross, indicating the share price breaking above longterm resistance. • The share price. Between $2.00 and $20.00 with a healthy Average daily volume traded. Lower priced stocks offer a higher risk/reward. A 20 cent move on a $2.00 stock equals a 10% move. But only 1% for a $20.00 stock.