Saturday, October 27, 2007

Method: Long and Short

Time to buy- Market opens

Time to sell- Advance traders look for HOD or LOD, other new traders should sell before market close.

The way we usually play Long and Shorts is that since we don't have target prices for them, we will buy in the morning. For new traders usually sell it near close of the market, however for more advance traders they usually find the best exit point to rake in the most profit.

For long and short information of how I do the percent, it is from morning to close of the market. This doesn't apply to the low of the day. Probably more advance traders can. However, I can give a good approximation close to High Of Day or Low Of Day, but it is hard for me to use this blogspot to help indicate when it is going to happen.

*The key to this trade is we usually find a stock that is good, however due to a drop of 10+ % in day 1 and a 5+% in day 2 with no news. This is a result of panic trading and heavily oversold, we are looking for the dead cat bounce on the third day.* Same for crash when it went up 10%+ in day 1 and 5%+ in day 2 we are shorting it on the third day.

Rocket- long
Crash- Short

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