Another preview session conducted by Stevent Hee at ShareInvestor Malaysia academy at 3rd mile Old Klang Road. Stevent Hee is a private trader and conducts trading classes on the side. Stevent mentions he not just trades equities, he also trades futures and cryptocurrencies.
The talk of the day was about how to pick a winning stock in 5 mins. The title of the talk already sounded quite like a clickbait kind of advertisement. To say that one can pick stocks in 5 mins is a bold claim. Therefore naturally the class was more pack that the usual ones conducted on Saturdays.
Stevent's signature rule he uses to filter out stocks is called the "1 Cross 4 Method" which he shared to the audiences.
The core of the method is to identify stocks that closed at higher price than the past 4 days, keeping special attention to the doji->green candlestick pattern which is considered a bullish signal for the start of a trend.
The talk was a little bit unconventional, there were not many slides, instead Stevent wanted to show how his method works against stocks that the audiences suggests.
Stevent also has developed his own proprietary trading indicator called Sh Trend. Sh stands for his trade marked "Swing Hero" brand. The Sh Trend can be used for 3 period 1day, 3day and 7 days trading. Sh trend basically is suppose to show when the stock starts to trend and traders can start taking action based on the change in the color of the indicator. To an outsider like me, the Sh Trend indicator looks like a Parabolic SAR (stop and reverse) but with some more features like the arrow indicators to indicate the strength of the trend. Stevent did mention that he will not go for stocks that gap up even if the indicator show otherwise as there is a chance of black candle reversal.
Some of the nuggets of wisdom I got from the class :
- Traders rarely buy on lows, they buy on higher highs
- Good stocks will also drop, so sell when things look rosy
- Don't buy after a gap up, let the price stabilize first
Overall I felt the talk did meet the objective of the talk which was to create a simple and fast way to identify if a stock can be traded or not. You will still not be able to pick winning stocks in 5 mins but at least there is a simple to understand methodology to use. Stevent can be found a at https://www.facebook.com/stevent.hee.33
