<<Never enter a position in a stock you heard about for the first time
less than 24 hours ago, and never buy without a long look at the chart.
<<Slow down your number of trades if you've been on a good run ... or even
cash out and take some days off.>>
No way, when I am hot the money rolls in very fast, usually because the market conditions in general are good and I am in the right stocks in the right sector.
<<Never more than 30% of day trading portfolio in a single stock.>>
Depends on what kind of trader you are. Some traders only hold one or two positions and day trade, with nearly all their capital in the trade. I hold multiple positions and would never have 30% in one trade, since I hold overnight often. I don't like to wake up broke.
<<Finally, the rule I should have followed this morning:
In the evening, make a note of how you expect each of your positions to
behave in the first few trades of the day. When the time comes, if it's
not behaving the way you thought, to hell with it - just get out>>
Too simplistic but correct in general terms. If I buy a stock off support or a moving avg, I make it break down, and will not sell support. Market makers are savvy and know that if a stock breaks a 50 day, the sell orders will come in. So often they take the stock down below it. I sell, but the key is to get back in when it reverses.
A recent example is KMET. Look at how it broke 50 day and recovered quickly.
Someone mentioned UTEK. Today it broke the 21 day on volume. I have found UTEK to be a great trader. It looks to have broken the uptrend channel on the daily chart. I would like to try it around the 24 area.
DMMC which I bought today has turned up from the 50 day and looks very good. Nice volume today.
PESC will break soon
ORBKF also, great chart. Very strong, will buy the break.
MDRX classic oversold reversal, JMED also
TSEMF closes above 21 day and the valuation is really favorable. I used to trade it in the 30's. Good co.
IDTI vol picking up, I expect it to take out the 21 day on a clossing basis tomorrow. target there is 14
RDRT should be good tomorrow with DELL earnings. Target 30. Was weak late but should get some early motivation.
Looks like MIND put in a bottom, the 21 dma is good support there, as its the uptrend line. target there is 18
IFCI came out of the bottom with a vengence today after a big block buy early. |
