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Stock Trading - How To Choose Stocks For Stock Trading
02-13-2018, 06:39 PM,
#1
Big Grin  Stock Trading - How To Choose Stocks For Stock Trading
I have found that the best stocks for share trading and day trading will be the stocks that make up the S&P 500. The reason for this is that the large Mutual Funds and large Institutional Buyers pay attention to these stocks in their never-ending quest to beat the S&P 500. These stocks broadly speaking have strong general power and total performance to-the S&P 500 Index. Of these shares, I prefer to focus on those that are in the Nasdaq 100 Composite Index. It's the Nasdaq stocks that I like to deal the most for their volatility of the stocks in the Nasdaq 100, I focus on these stocks that I that I like to refer to as 'trading where in fact the motion is' stocks. These are stocks that show tremendous amount in the amount of shares being exchanged through the day, at the very least 15 million shares and preferably 20 million shares and more. My true preference is share amount of 30 million plus every day.

In addition, the stocks must have a big daily stock trading range, which can be lots of volatility and low price of that stock for the prior trading day, and the distinction 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 risky and have an everyday travelling range of $3.00 to $6.00 and more.

The explanation for this is that I trade the long side, both both sides of industry and the small side on an intra-day basis. I've no fascination with whether the stock closed in positive, or negative property the last day, just as long as the price and volume action are there.

All I want is high volume, the price action and the volatility. If I've these three materials, I know that the major players are very effective in that stock and they're either increasing, or reducing their weighting in that stock. Increasing and causing the price and volume activity are what I call the 'accelerators', which are the energy players, the pro-gram traders and the hedge funds who are wanting to jump in ahead of the mutual funds and front run the stock, either up, or down. That is when the action really gets hot and you will see 'climatic size' where each stock trade is occurring within just a second. I've seen this often every day. I-t happens all of the time.

One thing that may not be clear to you on top is that what I've done when I choose stocks for trading and investing is as my re-search department that I've used the key participants. The cash flow is extremely visible because most organizations are on a single site in terms of what they are buying and selling. This shows up in the volatility, the purchase price action, and volume for your stocks in-play. It is really hard for a herd of elephants to hide their foot prints in the mud.

Now with a potential list of stocks to trade. I then load those shares into my 'trading' watch list. As well as that watch list I've another watch list that includes every investment in the Nasdaq 100. If the market opens I spend the first 5 minutes or so, seeing the quantity, value action, and direction of the shares in both watch lists.

I am trying to find specific patterns to develop and if I see a pattern that I prefer 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 offered the stock is trading consistent with the information of the Nasdaq 100.

I always have a reasonably small defensive stay in place to protect me in the event I am wrong and took the industry too soon. I may try that trade 2 or 3 times before I have the right entry, each and every time going for a small lose. My brother discovered more information by browsing Google Books. However when I get the right entry, there's lots of money to be made, especially when you are in the right stock.

One of the things I love to do is to stick to the same stock, as long as it satisfies my stock trading needs. The same stock may be traded by me all week as along as it is performing for me and I'm making great profitable positions with it. One of many benefits by doing this is the fact that you actually get to know the inventory well, and how it deals.

To repeat, in my opinion the best stocks for stock trading are these stocks with very high rate and high volatility, high volume and an excellent intra-day travelling range. When you've these features, you know the large institutions and the 'accelerators' are involved in the stock.

For stock trading, you'll require a direct access time trading account from a stock trading broker that provides direct access stock trading software. This is a total must have for stock investing. The application can have Level II, maps, technical indications, etc. Direct access implies that your buy and sell orders are delivered straight to industry by you without needing a man to position the orders for you..

The very first thing you should do before you even attempt stock trading, and this is even if you do have some knowledge, would be to simply take a good day trading course to ensure that you really understand how the business of stock trading works, what designs to consider, how the markets function and how everything fits together. It'll be the best investment you ever make. If you do not eductae yourself - you have better-than a 90-days possibility of failing.

* what share trading and day trading are compatible.

Good luck and good trading,

The Maverick

Larry Schade.
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