Entry and exit points for plain old "day" trading tend to be determined by a couple of things. Firstly, we look at the PREM or DISC to Fair Value on a Emini tick chart. This will tell us when the money is going to be going after the stocks. When futures houses can sell futures at a high PREM, they will hedge with underlying securities. This can be seen with any spreadsheet. We then look to see where the peers are trading, this helps to determine the strength of the stock in relation to others, and to the overall market. This helps with "strong vs. weak" stock determination. We check to see that we are either in a "trading trough" (between futures pivot points), or if we're near a support or resistance level (pivot). If just above a support level, then that's added ammunition for buying, and vice-versa. The last, and one of my favorites, is to look at TICK (net up vs. down ticks). When near an extreme, usually around 750+ either positive or negative, we see a short term reversal. And, always be aware of the intraday range of the particular stock from standard deviation moves based on volatility (we call these "bright bands"). Now, since we tend to trade the same "children" stocks, day in and day out (vs. picking a new stock du jour each day), we have a pretty good handle on how to handle "day" trading these securities. FWIW, Don
Don, Thank you for the education. I only trade futures, so will try to incorporate your comments into what I do if possible. Thanks-
Futures are a bit tougher (harder to trade the leading indicator), but the pivot points and PREM are crucial to entry exits (as are the TICK's). www.stocktrading.com/Tradinginfo.htm has some of the daily basics (if you have an interest). Good luck, Don
And the bitch is still at it - Twenty-nine posts, all today, all this same bit of spamming shit. Oops, my mistake - we're up to 47 spammings now.