Buy at CONSOLIDATION POINTS EVEN IN DAY TRADING. EXCEPT FOR THE INITIAL 10K IN THE EARLY PHASE.
1. When the current price of stock crosses the Moving average and comes down, it is better to sell it immediately instead of using a limit order. Because from my observation the stock goes down from high very soon and does not allow one to reach the limit order most of the time and chasing the market price with limit order get more and more costly and loosing game.
I made a mistake on shorting WBMD. When stock is selling at 20 percent opening, and more and more selling causes the stock to drop. the volume is high in the morning opening time. One has to short and wait for the market price comes closer to the Moving average on only then take action to sell.
I lost money because of the stupid decision to buy at that point. But never ever buy below the Moving average when the stock is deeply depressed. JUST WAIT FOR THE MARKET PRICE MOVE TOWARDS THE MOVING AVERAGE. THIS TAKE AROUND 30-45 MINUTES. THEN TAKE A DECISION TO COVER BACK OR HOLD FOR FURTHER DECLINE. OR LEAST CLOSER TO THE MOVING AVERAGE. DO NOT TAKE ACTION BEFORE. WAIT FOR 30 TO 45 MINUTES. TAKE THE MAXIMUM PROFIT.
If you see a second red block under the Moving average when stock is rising and the second green block when the stock is falling are the limits. Do not ever wait for the stock to go below that .
Get out even if it is a small lost situation. Other wise it becomes a big loss.
Because all winning stocks do not go there. One can also set limits at that price to get out. Do not waste time and think that luck will overturn the rules of the game. Stick to the rules. Make the rules better and better to suit the day trading system.
Until now the rules are playing well. One has to be consistent with the rules. Do not overnight or hold when the over all market is moving sidewards. There is not rally. The rally times are over. Most of the stocks are in their highs and other stocks are declining. For most of the stocks it is not the time to hold. DAY TRADING IS BETTER.