The Asian and European markets can be used as a possible guide to get an idea of which direction the US market is likely to go in. For example, if the Nikkei is down 3%, the DAX is down 2.3% then there is a strong possibility the US Futures and stocks will end up down overall. The US futures will have been trading down in their overnight session with Asia/Europe aswell, so there could be an immediate rally at the 9am open before moving down further.
Posted by admin on Jan 1 2010 in Learn Stock Trading Tags: 9am, Asia Europe, Dax, European Markets, Futures, Nikkei, Overnight Session, Rally, Stock Tip, Stock Trading, Stocks
Watch out for stocks that have a significant gap at the open, either up or down. Stocks that have gapped are likely to have good volume and swings in price, presenting good trading opportunities. A gap is defined by the opening of the bar being greater or less than the close of the previous bar. If a stock closed at $85 yesterday and opened at $88 today, then it has gapped up by $3.
Look at the previous days trading range by subtracting the high of the day from the low of the day. You may want to add this into a stock scanning program so you can find stocks which had a range of $1+ for example. Stocks with large ranges will give more opportunities for larger moves for you to capture compared to stocks which only fluctuate by a few cents each day.
Review
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Posted by admin on Nov 6 2009 in Technical Analysis Books Tags: Arms Index, Beat, Buy Sell, Buy Stocks, Decade, Discipline, Hardcover, Inventor, Invest, Invest Stocks, Investing Books, Investor, Knowing, Market, Market Wisdom, Methodology, Sell, Stocks, Stocks To Buy, What
Review
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