Hi, I like scalping most of the time. here is a possible strategy, what do you guys think? After 11:30am eastern, set buy stops on any high volume stock at a price of the mornings highest price + $0.01. similarly with shorts, place a stop at mornings lowest price - $0.01. that part seems allright( i think), but the next problem is how long should I stay in that stock? I can exit after making a couple of cents, but that would not maximize profits. I want to try and find out what would be the best. looking at most stocks, I could easily get 5 cents/stock. will try this one on monday. Obviously guys, smart comments are welcome.
I think you are basically thinking of implementing an Opening Range Breakout strategy. You could just set a trailing stop.
I don't if a stop would work in this case. Im talking about a very short trade. order gets executed, once stop price is hit, then I get out once I make money(how much??) or get out( dont know how much should be risk, or at what point I should get out??)
i dunno, I mean im looking at different stocks and seems like it does work, need to actually implement it on monday to test it. Others who have tried exactly this or have any views, please comment.
A huge majority of traders arent successful. So maybe you will know its a good strategy if hardly anybody says it is.
You need an edge, nothing public, for a strategy to consistently work UNLESS you are trading nothing but price action and reacting to support and resistance. Incognito
Absolutely agree. Timing trades based on daily times fail more often than not simply because they never repeat to the minute consistently. The times they do repeat generally occur within +/-10 to 15 minutes. For example, 30 minutes after open is usually when I look for a reversal - but it could be 20-40 minutes after open, maybe more. The difference of a few minutes mean you'll get shook out, even if you were right. Now, to be conscious of the time of day in relation to price action would help a lot vs strictly zeroing in on a certain time of day to trade. http://youtube.com/user/SnP500Trader subscribers learn levels rule for consistent gains. It's free. Any doubts, simply check out the comments other traders have posted a few vids back, and to see how well his lessons and market calls have worked since Jan. So far, an uncanny 100% right on! Best to you! Steve
I posted an article about trading breakouts and breakdowns on my blog. You can read about how I do it here. http://stocktradingstrategies.blogspot.com/ I think you might find it interesting.