Monday, August 8, 2011

volatile markets are back

Day trading is the best thing to do to manage these volatile markets. there will be some major moves up or down. It is not worth holding stocks for the next day at this time.

Time to be extremely careful also time of great opportunity.

1. DO NOT AVERAGE DOWN. short stocks going down. If stock below day Moving Average do not cover it till the day end. Today BAC and URI fell the most. They were good opputunities. shorted BAC at 7.10. Should have held it till the day end since the graph showed there was still heavy selling. It closed at
6.40. Would have made 2-3K on it. Any way made some money on it but it was bad execution.

2. Market is down from 12600 to 10,800. that is a 1800 drop. Market may go up again for 300 point any day. It is better to just day trade. need to be very careful. If holding stock overnight DO NOT DO IT WITH MORE THAN 15k. One can day trade the next day with the extra money.

1 comment:

Gade said...

Realized day trading is time consuming and not for me. No more day trading. Also it involves low probability trades and predicting the market on day to day basis is impossible unless one has a day trading system and understand the indicators very well and also the cost of trades commission is too high. It is waste of money giving away to the broker. Just do the high probability trades. And be happy with the profits instead of trading too much and losing profits and getting into loses. Its not worth the time and everything. Out of day trading. Not for me.