There are trading methods working fine in trending markets and they fail in ranging one and vice versa. How do you handel this "problem"?
Look for scalping plays (i.e., dimes and quarters) on listed stocks where you understand the specialist's moves and can read the tape well. Combined with tight risk management, you can make a few hundred bucks this way.
Look for scalping plays (i.e., dimes and quarters) on listed stocks where you understand the specialist's moves and can read the tape well. You can make a few hundred bucks this way.
Use bollinger bands to determine the range and go in and out as the price bars bang the opposite sides of it on a one minute chart. Or go for a 15 minute chart and use the longer term trends to trade off of.
Trending Markets: Buy Strength; Sell Weakness Choppy/Consolidating: Sell Strength; Buy Weakness Hope this helps.
This is called contra-trading and it's usually a recipe for disaster. For choppy/consolidating days, you should still buy strength and sell weakness. Just reduce your profit expectations accordingly. Don't look for 50 cent moves when there are only 10 cent moves to be had.
As one could really go wrong buying "weakness" at SP 893 today..get your facts in order..this is not a recipe for disaster...only a truism based on 5 years of observation! This IS a consolidating/choppy market..in case you haven't noticed. (Has been since 10/16/02)...wake up!