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Ways to Invest Money - Strategies Using Stock Metadata

By Stan Pokutylowicz on Oct 5, 2009 |Investing

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When searching for ways to make money, consider the use of stock metadata for the stock market.  It helps you understand that investing can be more than just checking out stock prices, stock charts, stock market history and stock market results. As part the exploration of ways to invest money, you must have goals and plans with specific strategies to attain them. And let’s not forget about educating yourself about risk and how to handle it.  That's why the use of stock metadata must be an integral part of any stock analysis process. Today, we'll be touching on some strategies available through the use of stock metadata when looking for ways to invest money.  To do so, we'll examine  two stock price volatility indicators along with their associated stock trading strategies: High Low Gap found in the Daily Historical Metadata Detail report Total Profit for Day appearing in two places in both the 15-minute Metadata Detail and 15-minute Metadata Summary reports High Low Gap This is one of the easiest indicators to understand. It is simply the difference between the highest and lowest trading prices for the stock during the day. When stocks are volatile, the value in this field tends to increase. And depending upon the price of the stock, it indicates potential trading opportunities as opposed to investing opportunities. For example if shares of company X trades between $5.00 and $6.00 for a difference of $1.00, based upon the low price this shows a volatility-ratio indicator of 1 to 5. The lower the ratio, the greater is the opportunity. When scanning down the High Low Gap column in the Daily Historical Metadata Detail report, if the values continue to be similar or increase in value over a period of time, then the overall volatility-ratio during that time is high. This presents potential money-making opportunities for individuals trading this stock. Total Profit for Day This indicator appears in two different sections of the report, Long Position and Short Position . For reports where the Total Profit for Day indicator appears, all calculations are based on the assumption that transactions are being executed for a block of 1,000 shares. In the Long Position section of the 15-minute Metadata Detail report, this Total Profit for Day value is calculated by adding the amounts appearing under the Profit or Loss column for each day in that section of the report. In the Short Position section of the 15-minute Metadata Detail report, it is also calculated by adding the amounts appearing under the corresponding Profit or Loss column for each day in that section of the report. The15-minute Metadata Summary report is a synopsis of the 15-minute Metadata Detail report. It only shows the row of information for the final trading period of the day. Here’s how to take advantage of market conditions and use a strategy that works. Much like the High Low Gap indicator of the Daily Historical Metadata Detail report, the value in this field tends to increase when stock prices are volatile. And depending upon the price of the stock, it indicates potential trading opportunities as oppose to investing opportunities. The difference is that this indicator tells you the maximum value of any profitable opportunities that can be realized during each of the twenty-six 15-minute trading periods of the day. For long positions, the strategy used is to reduce risk by executing a trade (buying long) only when the current lowest price is less than the previous lowest price. Then if the stock cannot be sold for a profit at a higher price during the current 15-minute period, there usually is another opportunity to do in the 15-minute period that follows. The maximum potential profit of these opportunities for each 15-minute period appears under the Amt meeting criteria for 15 min column. The total for this column for each day shows up under the Total Value of these Matches for Day column. This is, in fact, the potential maximum profit for the day using this buy-long strategy. Now for short positions, the strategy used is to reduce risk by executing a trade (selling short) only when the current highest price is greater than the previous highest price. Then if the short sale cannot be covered at a lower price which results in a profit during the current15-minute period, there usually will be another opportunity presented in the 15-minute period that follows. The maximum potential profit of these opportunities during each 15-minute period appears under the Amt meeting criteria for 15 min column. The total for this column for each day shows up under the Total Value of these Matches for Day column. And this is, in fact, the potential maximum profit for the day using this short-sell strategy. When you go to the Stock Metadata page at Stock-Market-Keywords.com , you can see examples of this strategy at work along with estimated potential profits made when trading stocks of selected companies. Pick a company that’s featured there. Then go to the reports and examine the contents using the information shown above as your guide. You’ll be amazed at the money to be made with these strategies using the High Low Gap and Total Profit for Day indicators. But before spending a cent on ways to invest money, try these strategies out on paper first. When you get the hang of using them, open a virtual account on updown.com to determine if they work for you. And then if you’re convinced you can then succeed, you have the option to test them out in the real world. Good luck! Stan Pokutylowicz PS:  Not clear on stock market terminology or want to learn about the stock market but don't know where to start, check out the keyword terms that are most-often used by people for doing online searches on this topic.  When you click on a keyword, you see a short narrative along with links to some of the most popular and informative sites for it.  And if that's not enough, there are one-click buttons there enabling you to get advanced search results from Google, Microsoft bing, and Yahoo! Want to comment on this article.  Click here .

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About Stan Pokutylowicz

Ways to Invest Money - Strategies Using Stock Metadata from Stan Pokutylowicz

Stan Pokutylowicz is a senior Information Technology consultant serving major North American clients like AT&T, The Boeing Company, Fujitsu Consulting, etc. He also uses his expertise for investing.

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