Clappy,
I share your sentiments. I am basically a LTBH investor, but found the need to become a short-term trader as well when the market sentiment changed so much this year. I personally do not believe the market will resume the past years' performance where anyone could enter the market and make money - the profitable throw dart system is gone.
I took a daytrading course this summer and learned some things..
1. I am not the typical daytrader that is happy making a "teeny" here and there all day, trading incessantly
2. I am a "long-term" daytrader, in and out usually within the same day, having used charting and FA for entries/exits
Like you, I couldn't just sit and watch my LTBH stocks bleeding for weeks at a time, unable to do much, yet stay away from the market completely. Being that it appears we are presently in the same trading mode, let me suggest you read "A Beginner's Guide to Day Trading Online" by Toni Turner. I had the pleasure of being with Toni during my summer course and found her book of invaluable use. I actually learned more from her book than the hands-on course itself.
I am not a tape-reader, using only known FA and TA during my daytrades, usually not doing more than 3-4 trades a day. My greatest tools during these daytrades are, using QCharts (live feed):
a. set up 5 minute charts on the S&P Futures, the Naz Futures, and follow the leading indicators, the TICK & TRIN (CCI is also excellent but QCharts doesn't offer it)
b. follow different time frame charts on whatever stock I am following
c. set up & follow a 5 minute chart on a leader, ie, CSCO
d. follow the reversal periods throughout the day
you will find that most stocks follow the movements of these futures and a leading giant (I chart CSCO), thus, giving you some advance notice of changes to come in your stock
I cannot spend the daily amount of time I would like on the market at this time due to some family medical problems, but when I do, I have found that "dipping" into daytrading has been mentally and physically rewarding (and mainly financially rewarding, too!). I have also used the last month's rallies to purge my portfolio of some "dogs with fleas" and have additionally added to my favorites.
Hope this insight may be of some aid - I am a novice TA trader, but enjoy learning all I can and know that there will never be enough.
Raven |
