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Day trading strategy?

  • Thread starter Thread starter Deleted member 4644
  • Start date Start date
D

Deleted member 4644

OK, so how about this for a day trading strategy:

1) Follow the news and in the morning (NY Time) look for a stock that has good news.
2) As it goes up, buy that stock (let's say we are working with $100,000 of cash here and shares are $10).
3) Once it has gone up one or two percent, cash out. Never, never "ride it". Just cash out. Total Profit: $1,000-2,000.
4) Pick a new stock the next day.

Rinse and repeat.

Why doesn't everyone do this (who has $100,000 to risk) ?

The obvious problem I see is that in a down market day, even a winning stock might start to die before you can bail out.

The other problem is actually getting access to the good news in a timely manner.

PS: Please discuss in light of a NORMAL market, not the BS we are seeing lately.
 
Why even wait for the news? at opening, price goes up or down. Set your buy/sell limits above/below opening price. then scalp any profits...
 

Most people have regular day jobs, and I imagine that the stress can be high with day trading. Swing trading may suit better for people that hold down a day job.

 
About the only thing working now is straddled option calls. If you did any of your theory this week, things tanked, and it would take a year to make up for it. You're better off owning the shares then writing the options on the peaks and buying to close on the dips.
 
Originally posted by: Deleted member 4644
OK, so how about this for a day trading strategy:

1) Follow the news and in the morning (NY Time) look for a stock that has good news.
2) As it goes up, buy that stock (let's say we are working with $100,000 of cash here and shares are $10).
3) Once it has gone up one or two percent, cash out. Never, never "ride it". Just cash out. Total Profit: $1,000-2,000.
4) Pick a new stock the next day.

Rinse and repeat.

Why doesn't everyone do this (who has $100,000 to risk) ?

The obvious problem I see is that in a down market day, even a winning stock might start to die before you can bail out.

The other problem is actually getting access to the good news in a timely manner.

PS: Please discuss in light of a NORMAL market, not the BS we are seeing lately.
Click to expand...

Trading costs + brokerage fees will kill you unless you invest very large amounts
 
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