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Investment Trading - How To Choose Stocks For Stock Trading
02-14-2018, 04:41 AM
Post: #1
Big Grin Investment Trading - How To Choose Stocks For Stock Trading
I've found that the best stocks for stock trading and day trading would be the stocks that make up the S&P 500. The reason behind this is that the large Mutual Funds and large Institutional Buyers pay attention to these stocks within their never-ending quest to beat the S&P 500. These stocks usually have complete performance and strong general strength to the S&P 500 Index. Of the shares, I like to focus on the ones that are in the Nasdaq 100 Composite Index. It is the Nasdaq stocks that I like to deal the most due to their volatility of the stocks in the Nasdaq 100, I focus on those stocks that I that I like to refer to as 'trading where in fact the motion is' stocks. These are stocks that show tremendous volume in the amount of shares being exchanged through the day, a minimum of 1-5 million shares and preferably 20 million shares and more. My real desire is share volume of 30 million plus every day.

In addition, the shares must have a large daily stock trading variety, which is plenty of volatility and low price of that stock for the last trading day, and the difference between the high price. I look for a trading range of at the very least $2.00 per-share, but I really prefer those who are more unstable and have an everyday travelling range of $3.00 to more and $6.00.

The reason for this is the fact that I trade the short side on an intra-day basis, both the long side and both sides of the market. I've no interest in perhaps the stock closed in positive, or negative territory the prior day, just as long as the volume and price activity exist.

All I want is the price action, high volume and the volatility. I know that they are either increasing, or decreasing and the main players are very active in that stock their weighting in that stock, if I have these three materials. Increasing and causing the price and volume activity are what I call the 'accelerators', which are the momentum participants, the pro-gram traders and the hedge funds who are trying to jump in before the mutual funds and front work the stock, either up, or down. This is once the action really heats up and you'll see 'climatic size' where each stock business is occurring within just a second. I've seen this many times each day. It happens most of the time.

Something that might not be evident to you at first glance is that when I choose stocks for stock trading what I've done is as my re-search department that I've used the key participants. Because most organizations are on the same site with regards to the things they are buying and selling the cash flow is very visible. This appears in the volatility, the cost action, and volume for that stocks in-play. It's extremely difficult to get a herd of elephants to cover up their foot prints in the mud.

Now using a list of stocks to trade. I then fill these shares in-to my 'stock trading' watch number. As well as that watch list I've yet another watch list that includes every stock in the Nasdaq 100. If the market starts I spend the initial 5-minutes or so, observing the quantity, value activity, and direction of the shares in both watch lists.

I am looking for particular patterns to develop and if I see a pattern that I like to day trade, I will pull the trigger and get the trade, either on the long side or the small side based on what the stock (price action and size) inform me, what I see the market makers performing on the Level II screen, and provided the stock is trading in line with the chart of the Nasdaq 100.

I also have a reasonably tight protective remain in place to safeguard me in case I am wrong and took the trade too soon. I may attempt that industry two or three times before I get the right access, each and every time going for a lose. But when I get the right access, there's plenty of money to be made, specially when you're in the right stock.

One of many things I love to do would be to stay with exactly the same stock, so long as it satisfies my stock trading requirements. I might deal the same stock all week as along as it's doing for me and I am making great lucrative positions with it. One of the benefits in this way is the fact that you really get to know the inventory effectively, and how it trades.

To summarize, I think the best stocks for stock trading are those stocks with very high rate and high quantity, high volatility and a superb intra-day travelling range. When you've these qualities, you know the large institutions and the 'accelerators' are involved in the investment.

For stock trading, you will require a direct access time trading account from a stock trading agent that provides direct access stock trading application. That is a total must have for stock investing. The software will have Level II, maps, technical signs, etc. Direct access ensures that your buy and sell orders are sent directly to the marketplace by you without needing a middle man to position the orders for you..

The first thing you need to do before you even attempt stock trading, and this is even if you do have some experience, would be to just take an excellent day trading program so that you really understand how the business of stock trading works, what designs to look for, how the markets function and how everything fits together. It'll be the very best investment you ever make. If you do not eductae yourself - you've better than a 90-mile potential for failing.

* the words share trading and day trading are compatible. Discover further on more information by going to our poetic wiki.

Good luck and good trading,

The Maverick

Larry Schade.
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