Quote:
Originally Posted by PussyMan
WM at less than $4 is not really a potential money loser.
It's either WM that could rebound or burn $5k in Vegas where the odds of coming out ahead are really slim...  |
You are missing the point. When you day trade, you throw away all the shit people use to analyze long term potential of a stock, like the PE ratio. You do technical analysis, which is the study of chart patterns.
The best day traders stick to one or two stocks and buy and sell them many times each day.
EVERY stock has short term volatility; they all rise and fall as traders take profits and buy on lows.
If you are going to day trade, you need to get the long term mentality out of your head. You make small profits several times each day which can add up to thousands if you know the pattern of the stock well enough.
The closer you analyze the charts for a particular stock, the better you will be at finding when to buy and when to sell (or when to sell short and buy back), the KEY skill in day trading (where timing is EVERYTHING).