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Investment Trading - How To Pick Shares For Stock Trading
02-14-2018, 04:41 AM
Post: #1
Big Grin Investment Trading - How To Pick Shares For Stock Trading
I have found that the best stocks for stock 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 focus on these stocks within their constant 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 the stocks, I prefer to focus on the ones that come in the Nasdaq 100 Composite Index. It is 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 the action is' stocks. These are stocks that show tremendous amount in the number of shares being exchanged through the day, at the very least 15 million shares and preferably 2-0 million shares and more. My real desire is share level of 30 million plus daily.

Moreover, the stocks will need to have a large daily stock trading variety, which will be the distinction between the high price and low price of that stock for the previous trading day, and a great deal of volatility. I look for a trading range of a minimum of $2.00 per share, but I really prefer those who are more volatile and have a daily travelling range of $3.00 to more and $6.00. To research additional info, please consider checking out: more information.

The reason behind 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 interest in if the stock closed in positive, or negative area the last day, in the same way long as the price and volume activity is there.

All I need is high volume, the price action and the volatility. If I've these three components, I know that the main participants are very effective in that stock and they are either increasing, or decreasing their weighting in that stock. Adding to and contributing to the cost and volume action are what I call the 'accelerators', which are the energy players, the program merchants and the hedge funds who are wanting to jump in ahead of the mutual funds and front run the stock, either up, or down. This is if the action really gets hot and you will see 'climatic volume' where each stock industry is happening within just a second. I have seen this often each day. It happens all the time.

A very important factor that might not be obvious to you on top is that when I choose stocks for trading and investing what I have done is that I have used the major players as my research team. The money flow is extremely obvious because most companies are on the same site in terms of what they are buying and selling. This shows up in the purchase price action, the volatility, and volume for your stocks in play. It is really difficult to get a herd of elephants to cover up their foot prints in the mud.

Now with a possible list of stocks to trade. I then fill those stocks in to my 'stock trading' watch list. In addition to that watch list I've yet another watch list that contains every share in the Nasdaq 100. Observing the amount, value action, If the market starts I spend the first five minutes or so, and direction of the shares in both watch lists.

I'm trying to find particular styles to build up and if I see a pattern that I like to day trade, I'll pull the trigger and take the trade, either on the long side or the short side based on what the stock (price action and amount) inform me, what I see the market makers doing on the Level II screen, and provided the stock is trading in line with the data of the Nasdaq 100.

I always have a fairly limited defensive remain in place to safeguard me just in case I am wrong and got the industry too soon. I may possibly attempt that industry a few times before I have the right entry, each and every time taking a little drop. Nevertheless when I get the right access, there's lots of money to be made, especially when you're in the right investment.

Among the things I love to do is to stay with the same stock, as long as it meets my stock trading needs. I may deal exactly the same stock all week as along as it is doing for me personally and I am making good worthwhile positions with it. Among the benefits in this way is that you really get to know the stock effectively, and how it trades.

To re-cap, in my opinion the most effective stocks for stock trading are these stocks with very high velocity and high volatility, high volume and a superb intra-day travelling variety. When you have these characteristics, you know the large institutions and the 'accelerators' get excited about the investment.

For stock trading, you'll desire a direct access morning trading account from the stock trading agent that gives direct access stock trading software. That is an absolute must have for stock investing. The program could have Level II, maps, technological indications, etc. Direct access implies that your purchase and sell orders are delivered straight to the marketplace by you without needing a man to put the orders for you..

The very first thing you need to do before you even try stock trading, and this can be even if you do have some experience, will be to just take a good day trading program so that you really understand how the company of stock trading works, what designs to find, how the markets function and how everything fits together. It'll be the best investment you ever make. If you don't eductae yourself - you have much better than a 90% potential for a deep failing.

* what share trading and day trading are interchangeable.

Good luck and good trading,

The Maverick

Larry Schade.
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