Stocks in Play

Full Video: https://www.youtube.com/watch?v=lXVuaFazDLM&feature=youtu.be 

  If the overall market is moving down, stock prices will be also going down. There will be a handful of stocks that will break the down trend because they have an overall catalyst. These handful of stocks will be running whether the market is decreasing in value or increasing in value.   You want to make sure you are only trading the stocks that are running not stocks that are moving with the market. Now you might be asking what is a catalyst? Theses are the stocks that have any type of good or bad news:   FDA approval/ disapproval Earning report better/ missed  Mergers/ Buyouts  Management changes Stock splits  Contract win/ Loss   Weather the news is good or bad you can still find good opportunities. If a company releases bad news and the stock starts selling off you can look for a bounce off the low points, this is called a bottom reversal. I will talk about strategies in a later chapter.   You would be surprised what can move a stock. About 1 month ago Elon Musk tweeted that he was think about taking Tesla private. That same day Tesla stock jumped over 9% within 4 hours. After hours the stock moved another 12% before it started selling off the following weeks.   Can you trade large-cap stocks? The answer is yes. Often these types of traders have a very large account size because the have to load up on share size. The reason for that is because they move more slowly and more predictable than low cap stocks.   They do have different strategies when trading these stocks. But, they still look for catalyst with large companies.    You might be thinking that this a lot of time looking at the news or financial websites. What I would recommend doing is joining a trading team. When you are in a team of trading you talk about hot stocks and other members will help you find those stocks in play. You are more than welcome to join MVP-Trading team 100% free. We talk about hot stocks, our watchlist and many other topics.   Some traders do trade pre-market (before 9:30 am). I tend to stay away from this because I have found that it is lightly traded and there is not a lot of volume. Low volume is never a good sign when trading because the stock could fall fast and hard when traders leave the markets. Also with low volume it will be hard to buy and sell the stock with light volume.   Now what time is the best to trade:   When the market opens at 9:30 AM to about 11:30 AM EST. This is when the market tends to have the best opportunities to trade. Also in the morning you the market will have more volume and more volatility. Many strategies only work at the market open or are momentum based I will talk about this later. With heavy volume you can get in and out of trades fast.    As a day trader, I don't care about the company what they sell, there earnings, dividends offered and any financial statements. Like I said earlier, I am not a long term investor. Also I do not trade futures or options either, sometimes I do look at futures to gain insight on the overall market trend. I am a swing trader, I do take swing trading very serious. When swing trading I do care about the company's future, there earnings and many other financial statements. Since this book isn't about swing trading I will stop talking about it.