Most consistant daytrading style

Discussion in 'Trading' started by LelandC, Jun 27, 2002.

  1. LelandC


    I am looking for some input into what you feel is the most consistent daytrading style. I have been trading quite some time now and have been focusing on listed news plays for quite some time now. Lately I haven't been able to find too many good plays.

    Most of these plays are gapping up (or down) quite a lot and not really doing much after that - maybe the specialists are that good that they can factor everything into the opening print and take all the juice out of a potential play.

    I used to trade nasdaq stocks but got away from that and really haven't done much with them for a couple of years now - although I really don't mind the way that they trade. Another problem is getting short a listed stock as I dont' have access to bullets. There are many good plays that the specialist just doesn't give you an uptick.

    I have heard a lot of people say that you should focus on a handful of stocks and trade them each and everyday. I used to do this with the semi stocks back in like 98 and 99. The strategy was marginally successful. The problem with focusing on a handful of listed stocks is that I feel you must have access to bullets which I don't.

    Maybe I need to take another look as nasdaq? Although I'm not sure whats going to happen when SuperMontage comes on board. I really don't like to scalp but this market is really tough.

    Any suggestions?

  2. fade the gaps
  3. go back to the basics

    support and resistance
  4. LelandC


    I've messed around with fading the gaps but still haven't had much luck with it.
  5. shorting @ X.10, cover at X
    buying @ X.90, sell at X+1.00

    :) :) :) :) :) :)
  6. Going long at,say 24.90,in anticipation of the stock going to 25,and shorting,at say,33.10 in anticipation of it going to 33.Nasdaq stocks tend to do this constantly,trading toward size at the figure.This strategy of picking up .10 or .20 cents is known to be very profitable.
  7. LelandC


    I really don't like scalping for .10 or whatever. I want to be able to take 5-10K shares of stock XYZ and ride it for .75 or more.. That is trading to me!!!

  8. I was being half-facetious heh.

    I recommend shorting weak stocks and buying strong ones -- up to you to figure out which qualify for which :)
  9. I'm with you on that leland, I don't think it is worth putting that much money at risk to make that small amount of profit.

  10. he did say "consistent" :) :) :)
    #10     Jun 27, 2002