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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dustin who wrote (10526)	10/31/2000 7:12:32 AM
From: Eric P	Read Replies (2) \| Respond to of 18137

Dustin, To me daytrading is all about making high probability/low risk trades using instinct and TA. Just hoping that the stock will gap in my direction doesn't seem like a sound business plan. I'm probably misinterpreting your post, however, trading overnight positions for a morning gap is certainly a very viable strategy. Just as you describe daytrading, you look for high probability/low risk trades using instinct and TA. It's merely a difference in time frame, and definitely carries more risk and potential reward that simple daytrading. I believe that any successful trading strategy boils down to finding an inefficiency in the market and profiting from it. For example, during the summer of 1999, I found numerous overnight gap opportunities in stocks that were just breaking to new 52 week highs, closing at the high of the day on heavy volume. The theory behind this kind of trade was that people with 'day jobs' would detect these stocks in the evening and place market buy orders for the open, creating the gap. This worked very well for me for months, and will likely work well again in the future as the market gets hot again. (Note that currently, stocks hitting new 52 week highs are more likely to be good shorting candidates) Anyway, whether it be daytrading, overnight trading or swing trading, the key is to find repeating patterns that are proving reliable and profiting from these opportunities until they dry up and lose the consistency. Good luck, -Eric