For investors day trading on line, finding an investing stock strategy can be a daunting task. You have no doubt read countless articles and we have all uncovered the so-called classics written on day trading. The sad truth is that few of them ever work. That is really sad because the truth of the matter is that this is not rocket science. Now it may seem to be but I can assure you that you have a successful day trader living inside of you. I am here to help. There is not time to go into my own experiences but be assured that any successful investor has lost great money before gaining. Day trading on line is risky but once you get your confidence and learn what works, the road ahead is profitable. Always start off by online paper trading first. Do not forget that, it is solid advice that all pros agree on. With that let me start with the first investing stock strategy. Remember that these strategies work; they are proven and true.
Buy a stock making new highs after 1:00
I have previously discussed the 10:00-10:30 time frame regarding this matter. Here I want to focus more on stocks that are reacting to some form of news (IE: earnings release, guidance, new product announcement, upgrade, etc.. . ) This trade is a very, very high probability play and one of my personal favorites for that very reason. Stocks that are climbing ever forward and are making new highs at this time of the day tend to continue to climb all the way out to the close. In fact they often continue for days ahead. I would recommend buying and setting a trailing stop as a possibility. This trade is pretty straight forward and very profitable. Always start off by online paper trading first
Buy stocks that reverse back over the previous close
Very often a stock will take a dive only to reverse itself and play out for a nice gain. This happens a lot of times with earnings release and upgrade/downgrades. The straight simple way to play it is set a limit order slightly above the previous close price and usually the stock that crosses this threshold will continue on above it for the rest of the day. Sometimes it will teeter around that mark and drop back down but most of the time you can count on it moving back up. This is a good move for a swing trader looking for a good two to four day hold. Always start off by online paper trading first.
Gap Strategies
There has been much written on this topic and I will not go far into it as you can pull down good information free of charge off the internet. I will say that there is really good money to be made on these trades but it is not as easy as many would have you to believe. There is a reason why the following saying has stuck around so long, "trading the opening is for suckers." Let me say that I do not necessarily agree with that statement. In fact I believe that the opening is one of the best times to trade but if you think the market makers are going to throw their money at your feet you are dreaming. Always start off by online paper trading first.