Personally Tommy, I normally trade one, and baby sit it after I have purchased. I am constantly watching the depth, to see what the market is doing, and re-adjust STOPS as I go along. I am a smaller amount trader at this point, and although I take my losses in order to preserve capital, it still hurts a little. I'm not quite as experienced as the others on this thread, and that is why I risk less and worry more. This thread in particular has people who day trade for a couple of hundred profit, to thousands of dollars in profit. Nonetheless, we share our varied experience.
As you mentioned, volatility and liquidity are an absolute must for Day trading. You can get in and out at your choosing. Many of the people on this thread will trade several stocks at one time. I just find it kind of nerve wracking at this stage of my development. I'll let some others answer the question more completely, however, many who day trade blue chips will keep their eye on other similar companies in the sector. They will overlap charts to get a feel for how the whole sector is performing that day. For example, the banks tend to move in unison depending on various economic factors. The Chief, Keith and others have specifically mentioned what they look at, and perhaps one of them can post links to this effect.
I am somewhat limited with my computer and access time. Unfortunately, I just found out that a cable connection for my computer is not yet available in my area of Toronto. I was stunned, but I believe this will greatly increase my confidence in trading stocks. Currently, my computer is a little older than it should be and my connection to the internet by telephone is too slow to keep up with the others. I plan to have these 2 major problems solved within a couple of months (new computer, cable modem), and then probably just test the waters theoretically again. The point is that currently I have made smaller profits than what I expected--not that I couldn't have made more, but I couldn't react fast enough. This has caused me to be overly cautious in what I trade because I can't get in and out fast enough.
There is two other links that you may be interested in and may receive more feedback with your stock in particular. Remember to be prudent, and careful at the beginning when day trading until you feel more comfortable. Here are the links:
Daytrading in Canada Real Time
Subject 23802
Momentum Trading in Canada Subject 23841
Regards, Wisam |
