ic is there any way to predict that... because im trying to experiment different techniques.... is it successfull in the long hall.... chahine
A lot of the "momentum traders" are big on trading on news. Generally the news situation is pretty obvious. Find a company with BIG NEWS like Enron or Worldcom and make a decision quickly on the direction of the stock. Make sure to set tight stops and pay super careful attention to the news. Some momentum players are big in technical analysis and watch stocks that are being accumulated by institutions. In reality, this is a pretty good practice. Companies which are being heavily accumulated by institutions are usually stocks with a bright future. And when demand outsrips supply, then the price of the stock goes up. If you're investing at all in growth stocks then momentum is one of the key factors you're looking for.
thanx for enlightning me on that aspect. chahine
Something you can always do is keep a watch list of your favorite stocks. If you see some news or volume increases, then use it as a trigger to buy.
definitely and interesting approach to it.... chahine
Another good idea if you are momentum trading is by having a plan. Know what you are trying to accomplish with the trade. For example, if you buy stock XYZ with a plan to make a 15% return on your investment a purchase, sell it when you have your 15% and take your profits. Set a stop loss in case it doesn't work out, so you still retain SOME cash. It is also a good idea to have a tax deferred account for this kind of trading to prevent getting killed with taxes. :) (less than 1 year of holding)
On the subject of taxes, I don't think i will be the first to say I despise them. :evil:
[quote:ac6e2c9553="highflyer"]On the subject of taxes, I don't think i will be the first to say I despise them. :evil:[/quote:ac6e2c9553] Get in line....it's a long line.
I doubt anyone is a fan of taxes of the tax system. Let's face it, income taxes and the such are a relatively new system, started in the last century. Let's face, it a progessive tax scale that goes up as you produce more and in so many ways, that seems unfair.