You are welcome. I suggest that you do not get into trying to figure out what each particular market maker is doing, but you should know who is "real" and who is an ECN.
Also, don't assume that a big volume offer and a small volume bid will automatically take the stock down. What you want to shoot for is getting a perfect entry point, and then calculating your exit so that you leave a little bit for the guy that is taking your trade away from you. If you are sharp, you will have your exit point (win or lose) calculated before you pull the trigger. Whatever you do, don't double up on a loser. Sometimes it works, but you are learning, and it's too risky for a beginner.
If I were coaching you one-on-one, I would caution you on entering trades after 11:00 a.m. and before 2:00 p.m until you have 3 or 4 winning days in a row. Fridays, especially options expiration Fridays, are tough to read, and you should be cautious on Fridays when you start out.
Trade in the direction of the overall trend, i.e. try not to short a strong stock looking for a reversal, and watch for overall market movement. Many traders use the bond index or the NASDAQ index to get clues on the overall market trend for the day.
You are not day trading. You are LEARNING to day trade. There is a difference. Watch what you do right, and watch what you do wrong even closer. Keep doing the things you do right, and stop doing the things you did wrong. Remember, I want your money. <GGG> |
