Momentum Masters

Question 1

Zanger daily routine (MM,2015)

Answer 1

-Watch premarket ticker tape
-As soon as market opens, I want to see how stocks are moving; are they gapping up with no volume, in which case they will likely sell down right away, or gapping down with low volume, in which case it’s a buying opportunity to add some positions
-Gapping up or down on heavy volume tells me they are likely to extend from there

Question 2

Higher volatility is observed in ____ priced stocks

Answer 2

Low

Question 3

If index is below 200 day and 50 day line, what is one way to find potential market leaders?

Answer 3

Look into stocks above their own 200 and 50 day lines. They could be leaders once market turns up.

Question 4

How to trade IPOs

Answer 4

Wait at least 3 to 4 weeks, ideally months (~3)
- if a sound base develops, I buy as it emerges consolidation, preferably near its all time high

Question 5

Large cap vs small cap companies

Answer 5

• large caps have slower growth
  - have more eyes on it
  - are “crowded”, more random price
  action
• small caps often have greater price moves

Question 6

About “favorite” stocks

Answer 6

Let the market guide you, not your opinions

Question 7

Confidence to take a larger position

Answer 7

If you have been picking good stocks consistently at 5% positions, then start your positions at 7-8%.

Question 8

Reaching a 15-25% position

Answer 8

-Only through market appreciation or;
-adding to the position as it has built subsequent bases