Wednesday, July 27, 2011

day trading with low priced stocks

1. STRATEGY ONE : DANGEROUS: This is a every day thing. Do not get into stocks that open very high and move to 40 to 100%. These are very dangerous stocks. During the first one hour they move around 80-150 percent. They the sell off begins at around 7.30 am. It is hard to get out of these stocks because already one might have purchased them at a higher price. Even if one does get into these stocks it is advisable not to put more than 2-3k at the first level. When it mores to second level sell off at 7.30am . Do not expect day trading stocks to move more than 150 percent. That is the limit. People do not want to buy after that limit.

2. STRATEGY TWO: SAFE: The actual stocks that go up 100-200 percent and are safe to play with are the ones that move 20-35 percent by 8 am. These are the stocks that move 100 or more percent by 11 am. That is when they go really high and time to sell off if it crosses the moving average. It always moves above the moving average. It makes several levels and consolidations. It is better to keep buying at each consolidation. These kind of stocks happen maybe once a week. They do not happen every day. 

2 comments:

Gade said...

Day trading involves low probability trades without a proper system analyse the momemtum properly and also involves too much stress on a day to day basis. The money one earns is lost in other bad decisions. So over all it is not for me.

Markus Heitkoetter said...

Hi,

Stocks and stock markets are the most well known markets, but they are one of the least popular day trading markets. It combining fundamental analysis and technial analysis can help investors make better investing decisions. Thanks a lot...

Day Trading Classes