StockTwits is a Great App for Traders

stocktwits

In case you do not know about it yet, you should really check out Stocktwits.  It is a great app for traders and connected to the twitter platform.

The reason why it is great is because it can be a good source of new trading ideas.  Basically all you have to do is go to the main site and watch new posts as they scroll down occasionally and automatically.  When you put your mouse pointer over the stock symbols at the end of each post a nice candlestick chart immediately pops up so you can judge instantly whether something interesting is going on or not. 

The nice thing about stocktwits is that you are looking at stocks that are the result of someone else’s analysis.  So there was some judgment involved in putting it there in the first place.  The caveat is that we have no idea how much experience or skill the person has who posted the symbol or chart and we have no clue whether they are more technical type traders or fundamental type traders.  Regardless, it can be a possible source of new trading ideas when either your scans are coming up dry or you cannot find good setups elsewhere.

The short two line posting nature of stocktwits is very functional for the trading arena.  It is short and to the point and allows you to study the chart quickly thereafter.   As you can tell by now, here at BestOnlineTrades I like to write and I like to go into a little bit more depth on my posts.  Yes, I could post short 2 line summaries throughout the day and throw a few stock symbols at you.  But I prefer to write a bit more because I believe that there is always a story behind every trade and and every potential setup.  I have found over the years that the best trades I have ever made where the ones that I studied the longest.  The ones where I took the time to find as much positive trading evidence as I could. It seems like I got burned a lot more often on the very quick decision trades.  And quick decisions trades probably go hand in hand with the problem of ‘over trading’.

As it happens I was just over at stocktwits a few minutes ago and I stumbled upon YRCW which looks like it may have some potential.  In fact it probably has a lot more potential than the two stocks I mentioned yesterday.  After some more consideration, I think the two I mentioned yesterday should go in the garbage bin.  There are too many liquidity issues with them that make them less than ideal candidates.  I may still watch them this week just out of curiosity.

Anyway, YRCW on the daily chart has some very strong volume coming in recent days and appears to be coming off of the bottom.

yrcw20090809

The 15 minute intraday chart on YRCW appears to be showing a possible cup and handle pattern with a buy trigger north of 2.50.  It was up slightly afterhours this past Friday.  I really like the robust volume here on this 15 minute chart.  The Friday 12 noon to 1pm price swings readily took out the Wednesday opening price bar swing with BOTH a sign of strength and bullish enough volume.

So this cup and handle is worth keeping an eye on in my book.

Posted in Market Timing, Stock Trading Tools
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