Important observation*************

It is during mid day, that stock are in the extremes mostly. If it is a selling day, the stocks are at usually at the bottom at around 10.30-11.30 pacific time. If it is the buying day, stocks are at the peak at this time.

this observation is very important for day trading. I think I should wait till the mid day either to make sell  or short or buy and hold decision.

This observation is after looking at charts every day from several months.  To get maximum profit out of deals, do not trade till the mid day. 

dangers of day trading

1. first of all, it is unpredictable.
2. the 30 day MA is a best guide. And one cannot use 30 d MA in day trading.
3. Day trading graph can be used for buying and selling decision for the present day. But it cannot be used for holding stocks. One just gets into a wrong position with day trading if one wants to hold the stock.
4. Similar thing happened with AG which i bought at 17.7. It went up to 19, then came back to 17.6 when I sold it. If i followed the 30 d MA, I would have shorted at 19 instead and made a profit.
5. Day trading is just too unpredictable to make any guesses about the next day stock trend. Because the tread sets with a time span of 2-4 days. stocks consolidate even when coming down. So day trading is no use here.
6. Use 30 day MA to get into positions. Can use day trading graph for getting out. Use 30 MA for understanding the over all picture. When the over all picture is looking good then use the day trading graph and not the other way round. 

What do day traders do with volatile stocks

Print chart

On Google maps, when you use 30,2m moving average its basically a 2 month moving average for day trading, it is very helpful.


There was heavy selling at 12.30 pm. All the time the stock was below the moving average. If the stock is below it do not buy back shares in case you are shorting. I made that mistake today. Because other day traders short stock like these that are depressed by 
5-10 percent and make money and then cover the shorts at day end. This is when the stock goes down and the reverse is true for stock that go up. 


The lowest point was at 12.30 pm. Then the stock crossed the 2 month MA. This is the time to buy back shares and retain maximum profit. Also observe the high volume during that mid day time. Interesting.


When you see at stock depress and elevated by 5-10 percent, these are the stock for day trading safely and make a profit of 3 percent. If one is good at day trading and using moving average , then one can do this. One can hold stock long or short  for longer time with half the portfolio and for fun also do some day trading. 

AG technical analysis

5d 10d 1m 3m 6m YTD 1yr 3yr 5yr 10yr Max	Print chart

Made some money off this stock. I should have waited. Since the major sell off happened from 18.50 to 17.75. Within a span of  20 minutes when I went to take my dog for a walk. 


At some point one has to cover one's position. Not a bad job.  Stock market has great potential if done properly and following the rules and then having patience to realize one's knowledge. 


Good day for me. This stock may fall further but I lowered my bet and risk. I can do day trader with lesser amount if necessary. Since, I have learnt how to do day trading, it has become an asset. Do not have to hold when risk of holding overnight is high or unpredictable. 


Day trading is much better in such situation. 


Also made money by shorting URI and NOG by day trading. 

AG technical analysis

1d 5d 10d 1m 3m 6m YTD 1yr 3yr 5yr 10yr Max	Print chart

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Stock moving below the 30 MA, Shorted at 19.5. 3rd day of moving up after the fall. Stocks may move upto 4 days towards the 30 MA. Then slowly come down the way it went up. Have to wait for another couple of days for complete action. 

Same thing happened with NOG. 

As Jessie would say, I put all money at 23. Stock went up till 25. should have waited. But did not. Took a small lose and got out. But stock slided to 20 now. Should have got stocks in 40, 40, 20 percent succession. Do not put all your money at the same time at buying. This is the reason, I am getting loss, even though I am correct in my analysis. If stock moves against you, then one panics for even a minor change and sells. 

That is the reason why to have at least 3 stocks in portfolio to play with. 

Intraday Fosl

1d 5d 10d 1m 3m 6m YTD 1yr 3yr 5yr 10yr Max	Print chart

Opened at 101. High volume buying in the 1 hr. Stock moved to 113. High 107. Stock stable rest of the day. Probably ends today at around 102-104. 


Good stock to play the intraday today. But no money today ;) Also  a good stock for buying call options. If stock consolidates, then its good time to buy call options. 

Buying like Jesse Livermore

There is a lesson I need to learn, that I realized today. Most of the losses I got , which I later covered were due to going full money into trades that did not go in the direction I wanted. Like buying ENDP at 43 with more than 70-80 percent of money. This also happened with other stocks. This is a major mistake I am making.

As Jesse advises, buy in portions. Do not worry of the meager cost of each trade compared to the loss you get overall price of each trade is nothing. Buy in portions like if you want to buy 1000 stocks, buy 200, 200, 200 and 400. If they are on the rise buy accordingly.

If you are in full position in any stock you are in a danger situation. Your capital is at high risk.

In case of day trading, get into stock that are volatile in the range of 5-18 percent. Even if you get into it with high leverage get out of the trade with profits in the range of 3-4 percent and cover position for the day.


Use half the money in the account for long trend stocks. Use half for day trading. This the perfect mix. Then you do not have to keep selling your good stocks to do day trading. Cover your day trading by the end of the day unless it is an exceptional case. 


Understand the psychology of each stock trend. Understand what others are doing. You are not alone trading. There are other people sitting in front of computer like you trying to make money in the market. Understand herd psychology. What others are doing and go long or short according to that.