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April 21, 2008

Secrets Of Stock Trading Ideas

Most people who get started in stock trading ideas and investing all have the same problem. Where do I find ideas to watch? Here are a few tips that can help you find stuff to watch and possibly trade. Trading the right stocks to begin with significantly enhances the odds of winning, and if wrong will lessen the losses someone might have to take.

First off, before the market opens, review the major news that is affecting some stocks. Look at what they are doing pre-market. Only concentrate on stocks that have moved up or down at least 1% and have decent volume of trading already before the open. This shows interest from both traders and investors. Next, take these stock trading ideas and write them down. Then let the market trade for the first 30 minutes. Pull out this list and see what the stocks have done. Usually the best ones to try to trade as stock trading ideas will have already moved a decent amount, either up or down.

Next, wait for an entry opportunity on this list of stocks. Also, after the first 30 minutes, pull up a list of the largest gainers and losers on the day outside your main list. Make note of anything that is on the list that did not gap up or down to get there and actually traded to the current price from the open on the day. Anything good here will have moved at least 1-2% from the opening price already. These stock trading ideas can then be watched for ideal entry points. Stuff that is really strong, wait for a 1/2% to 1% quick pullback in price, OR when about to break above a key resistance point. Its just the opposite for stocks that are weak.

Using this logic when concentrating on stock trading ideas will help you achieve success when day trading and investing.

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