SWN is a f*cking PITA stock to be trading using trend following strategies. It never makes any sustained move. It’s almost like it’s doing a Cha Cha, two steps forward, one step backwards. That one step backwards is enough to stop you out. Death by a thousand paper cuts.
Could it be due to the low volume? It only has a few million volume. However, it is difficult to trade even when it has 20 million volume daily. Is it because of the market cap? Should I focus on big caps?
Are all energy stocks like this?
I did a quick analysis of several stocks; it seems that volume does matter.
SWN, PYPL – Low volume, Does not have sustained movement
BMY – Mid volume, does have sustained movement at times, but healthcare stocks seems volatile
AAPL, TSLA – High volume, more likely to trend
This does makes sense as you do need volume to trend; without people noticing and trading the stock, it is less likely to trend. Something that nobody notices will never be ‘trendy’.
Will continue to practice SWN to see if a few good trades can save ‘Death by a thousand cuts’.
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