How to find good trades....

Discussion in 'Stocks' started by jimmymack, Dec 11, 2005.

  1. jimmymack


    Look for headlines on stocks in the evening and in the pre-market hours and if stock-moving news hits the wires, you'll know it.

    Do not place a market order before the open, paid members know about the "gap trap". We would wait for the morning's early market action to subside, usually around 10-10:30 EST and then think about buying if/when the stock starts moving back up. Look for the stock that is showing the greatest momentum and if they're all taking off, pick one that fits your budget.

    Move your stop loss up quickly as the price increases and if you are not stopped out, consider selling half of your position as the session ends in order to lock in some profits. You could probably carry the other half overnight because many investors may not see or hear the news until after they come home from work and might put in an order with their broker for the next day's open.
    This type of mistake can create a "gap open" that can add several more points to your profit and just keep moving our stop ahead until you get stopped out or decide the play is over and it's time to take the rest of your cookies off the table.