Learning to Day Trade, page-45

instant or minute trading, good name for it @kingpins

Here is but one example @espiaz that you can see the kind of research you must do...

Generally speaking, from my quick trading, the best swing trades come from 5 major scenarios:

1. "just prior to" the big announcement (anticipation stage)
2. At the "big announcement" stage (after anns brigade)
3. After a "bad" big anns that sends the stock downwards at least 33%
4. Overhyped stock with lots of swinging volatile prices and volume
5. Underhyped stock with lots of swinging volatile prices and volume

An example is BLA which is in category 3.



The 1 day chart above for yesterday shows me the stock again got hit early on large volume
However, for the first day in 4 days of continual smashings, you can see during the day it did reach a higher high 3 times, even on lower volume..

yes it finished at the low again (danger sign) , but the lower low is weaker than the previous 3 days, so the sellers are weaker, it may be reversal sign coming (remember anticipation of the future is what we need to work out)



This is now the 5 day chart above.
As you can see it has been smashed. That's what we want, that is the perfect number 3.
As you can see, the lower lows or the drops in SP are getting smaller daily, yesterday was hardly a drop at all

So i'm now looking for a reversal run.
It will come, that I have little doubt, but when?

I think today might see the run, based on my research on the stock and the reasons behind the drop, short sellers %, chart, momentum, volume, all sorts of things.

sidenote: the stock tends to end lower than during the day.
So IMO, as it stands, its a stock to buy between 1/2 hour after open and sell before 2pm.





here is the 1 month chart, as you can see, complete disaster.
I'm here to trade disasters, both good and bad ones.


Anyway, its one I will be trading today for sure today for no more than between 1 minute to 6 hours, looking for a 5-10% gain, no need to be greedy.


Good luck.