I just read the entire thread, and I have a few comments. I use Datek, and I have found them to be VERY good at executing trades, and you can't beat the price. I buy everything between the spread, I never pay the ask. I sell everything at market, I want to get out.
I tend to buy on the day of the big drop, usually around 3 pm, then watch the close closely. The 3 pm buy time seems better for me 'cause I will only buy if the stock has leveled out and there is a small trading range from early morning until my buy time, and MM are in need of depleating their supply and will sell between the bid-ask spread with no delay; and I avoid the end of day rush.
I watch the end of the day action, because it is often indicative of what will happen the next day, and if it's down, I'll sell then.
It helps to get Technical Analysis on the stock. There are people on SI who I have come to rely on re: establishing resistance points. I have found the resistance points to be great predictors of the next day's high. If I have that info, I set my sell 1/4 -1/2 point lower for the next morning. I always sell the next morning. Too many trades can become investments if not done quickly.
I have done 3 dcb's in the past 2 weeks, and I'm 3/3, altho with modest returns on some, but all profitable.
Hope this helps.
P. Webster |
