Stock Markets Exposed
Short term stocks trade advice needed?
I am thinking to go into the stock market. My idea is to trade stocks of well established companies. Looking to make a small profit. I would appreciate it if any one who has experience with day trading can give me some advice. Which sector to pick?. What stratgey to use?. The strategy that I am working on is to pick companies with good fundementals, but then use technical analysis to do the short term trading. I don't want to go for the long term investment becuase I don't like how the stock market has been behaving lately (mostly a down trend). Yes you are right, I meant swing trading and not day trading. I intend to invest in companies with good fundementals, becuase I don't want to take the risk of seeing my money wiped out!.
Public Comments
- You are contradicting yourself. Fundamentals only tell you about long term strength of the company and are thus of no value to short term traders. In the short term: buy stocks that are moving up and short stocks moving down. Match them dollar for dollar (almost) so that you need not be concerned with overall market moves.
- What you are describing is swing trading. (Holding a stock between 2-5 days or up to a couple weeks) While it can be profitable it takes awhile to understand how to do it successfully. For starters you need to learn how to read candlestick charts and understand how to use moving averages. You can not be a true "day trader" unless you keep at least $25,000 in your brokerage account. This is why you will find more swing traders than day traders.
- You are welcome to join: http://finance.groups.yahoo.com/group/TradingZoom/ - that is exactly what we do. Some of the best books on stock trading are listed on the front page.
- check http://finance.groups.yahoo.com/group/ShareGuru/
- Check out Yahoo group: ComputerProgramPicks
- What, in your view, are 'good fundamentals'? Your question mentions nothing about valuation...valuation is all that matters. Your objective should not be to find 'good' companies (which are easy to identify, after all); your objective should be to find 'undervalued' companies, which may or may not be 'good' companies. I would much, much rather own a mediocre company that is 50% undervalued than a 'good' company that is 5% undervalued. You can't make money investing in the latter...D
