Volatility and daily trade

Volatility and daily trade

By 10 minutes | cotidiana | 9 May 2020

Successful daily trading requires the ability to quickly identify and react to trends and patterns. It's hard to know which titles to watch, but once you've learned the skill, you'll be ahead of the game.

You have to keep a "watch list". It is a representative sample of actions that you monitor. Many stocks have discernible patterns, and with a little experience viewing the same group of stocks, many traders can guess whether the stock will go up or down. Most daily traders, at least those who are successful, are on their watch list.

There are several criteria for choosing actions for your watch list!

The most important thing is probably liquidity. Always look for stocks that trade at least 250,000 shares per day. If stocks don't trade well, it can be difficult to sell them when you need to get out. If you can't sell the shares, you obviously won't make any money. I prefer to trade stocks that trade more than a million shares per day, but certainly not less than 250,000. If stocks are underbought, market makers can easily manipulate the price.

You should also look at volatility. Volatility is the rate at which the price of a security rises or falls. A stock of $ 20 that goes up or down by $ 5 in a day is considered very volatile. With large price fluctuations, smart traders make money and others lose money. In my opinion, this is one of the most important criteria. Good stocks are volatile, at least from a daily trading perspective. Daily traders make money when the price changes dramatically over a day or a few days.

Avoid stocks with high dividends. We are not here in the long term, so the dividend is irrelevant, and these stocks tend to be high prices and low volatility. There is certainly nothing wrong with dividend-paying stocks, but they should be part of a long-term investment strategy, not a medium of exchange.

Large Council stocks can be volatile. But as a percentage, nothing has the volatility (and risk) of pink stocks or "penny stocks." These cheap stocks trade for less than a dollar can sometimes be huge. Some stocks move up to 100% -200% or more in one day. There are obviously many risks here. But you can start with just a few hundred dollars. As long as you choose well, you can actually make money. I know people who make a living from (mostly) penny stock trading.

Make a list of 30 to 50 actions and learn everything about them. What market factors influence your movement.. What current events are raising or lowering them.. This is your breeding farm, grow it. Once you know what drives your actions, you can act like a professional.

10 minutes
10 minutes

I'm a moderate person.. I can be happy with anything that make any human being happy, and I can be angry with anything that make any human being angry


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