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Way of the Trade: Tactical Applications of Underground Trading Methods for Traders and Investors, + Online Video Course by Jea Yu

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CHAPTER 7

How to Prey for Playable Stocks to Trade

Playable stocks should have momentum, follow-through, price movement, volume, and liquidity. They are elastic, not rigid, and have periods of volatility and range expansion due to larger active participant involvement. Bottom line, there has to be action. Without action, there is no opportunity. Meanwhile, trying to trade a stock that isn't playable only results in frustration and a lot of stops. More importantly, it distracts you from catching the moves on other playable stocks during their breaking moves, which only adds to your frustration levels.

A stock can be playable one day and then just chop in a small range for the next two days. Although the sector leaders will move with the SPY ...

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