if a stock has made some move then sits at some place for a while, it will probabably go back to where it was before. This is counter intuitive, however if you consider that the stock stopped where it is for a while and even with the pressure, didn’t continue, it will probably reverse.
Also, be patient, if there’s no news out, it will probably follow technical traits.
don’t go all in, especially if it’s in the morning
watch technical indicators
carefully writeup/evaluate/analize all factors before your first trade of the day
dont just trade cause a stock is high or low, look at the technical factors and don’t rush.
when doing early morning research, check nas/dow technically
try not to have any initial bias, take what the market gives.
ok, i was doing really well this morning, then i got over confident and put in a bit short order, thinking i’d catch aapl going back down, however it shot up, i didn’t monitor, and before ya know it I was down 2-3 grand, then I panicked, covered high, went long when it dipped then started thinking it was going to come back down and I sold then shorted again, only for it to eventually go up! again!
ohly crap, it’s gone up even more. i’m tempted to cut my losses and try to go long, again!
thing to remember, if it doesn’t follow normal day trading rules, it’s not just moving, it’s on a run one way or another.
ok, guess what, it came back down. I guess the main thing is to watch when the extended buying ends, and be ready to switch. I got in and should have at least taken profits on half of my shares. but I didn’t and so over time it all came back down, and i was in the neg a grand rather then setting earlier for a profit of a grand.
I just stayed up all night to trade.
lessons learned:
1)trade blocks in line with volume for the time/day (ie, no big blocks after lunch on friday)
2)related to #1, don’t get hung up over commissions
3)be patient, let the trade come to you, not vice versa (ie chase the trade)
4)related to #3, don’t let your emotions rule you
5)look for the general price tides, there are only a handful per day, sometimes only one
a)try to get the macro trends, 1-5 per day
