Experience day trader give me an advice.?

Question

is a good idea to keep an eye on a few stocks and trade just with them as a da trader rather than looking at all kind o stocks.

i think this way we can understand the movment of that stock.

Another question is when a stock goes down with a big selling volumn in a day and for more than a day. should i expect than stock to bounce back or short time maybe or a day, so i can take some profit from it. what are the signs of it bouncing bacnk.

Answer 1

I actually follow about 200 stocks grouped by industry. That way if one group is moving or declining, the sector should follow. The ones that move the highest are often the stronger ones in that sector, and the ones that fall the most tend to be the weaker. Hence, which ones to buy or short on rallies or drops.

In terms of trading, you should be VERY failure with that company and sector.

Volume. Good trading question.

Answer:

It depends

Technicians like to see big volume - up or down. Low volume means low interest.

A stock can pull up after a big volume down day, however it can continue to fall on greater volume the next day (more Bullish sign = "throwing in the towel").

No guarantees from management.

Good Luck!

Answer 2

Yes, many expert day traders, actually follow/track a selected bunch of securities (cud be stocks, stock options, stock futures, commodity futures etc.) because they develop a an expertise at their movements with more n more familiarity.

You may choose different parameters for selecting those stocks, maybe their VOLATILITY (u may choose high if u r a risky trader, n low if u r risk averse), LIQUIDITY (volumes), SECTOR (maybe u r able to assess the effects the environmental changes on a particular sector stocks better thn others) n so on.

As far as the 2nd question is concerned, stocks rise n fall, thts wht they do. Volumes cannot be a sole indicator, for attempting to predict its future movement, cz no matter how big expert u are, u may never be able to know whos buying/selling the stock at a particular time n fr wht purpose (cud be a big seller/operator, trying to offload its positions to book profits for the last time, or it may be backed by genuine retail investors, trying to sell after some poor expectations/herd mentality, or cud be due to a heavy selling done by insiders jst before some bad news is gonna be declared)

So its always best, as a trader, to rely more on the technical indicators n chart patterns, that appear to work more frequently in helping you make predictions, n ALWAYS use STOP LOSSES, wenevr u r trading. wtever trading, u nvr know, wen a particular security starts moving against ur expectation, so stop loss helps in minimising losses, if any...

Answer 3

If we had the answers to your questions all of us would be investment gurus. That is why I have a registered broker whose company can research and he can invest in accordance with his clients financial needs.

Answer 4

yes keep track of say 2-3 stocks only

regarding second part, yes it may bounce but u nvr know wn will be the bounce b possible..

if a stock falls by 10% intraday but closes at 8 % down. ths means it bounced 2 % from day's low,, which is difficult to catch though.