As fast as a viable trade idea comes to the surface, the market moves on. When looking at specific moves to make, you don’t want to trust the search engines. What you’re doing is educating yourself to explore the market and come up with money-making trade ideas on your own.
For example, had you purchased GE shares a week ago, you would be selling them for nearly $2 profit apiece. A 100 block of GE shares would have netted you $200. That’s not bad on an initial requirement of less than $1000. You could have profited from selling 1 year GE puts as well.
Yet it’s not always easy to make those trade calls, right? You could be wrong, and after the stock price goes down, you’re either holding, buying more or selling for a loss. If you’re a day trader, you aren’t wanting to accumulate positions that you have to hold for too long. Yet for swing traders, a little more patience can be exercised.
To find the best moves, you really might want to use a software program that identifies certain key factors. Sales growth is a major factor. If you are going to invest in a company, you want to know that they stand above average when it comes to sales growth. That goes for long-term investors, too.
But when it comes to trade ideas, you can also simply use technical indicators if you know how to read charts. In each case, you’re going to certainly be paying attention to volume. You want to know that the volume for a specific stock is above average, and hopefully in a bullish way. Looking at those candlestick charts can help you.
Remember that people with market knowledge are going to use options to control a large number of shares. And while you are day trading or swing trading, you still want to look at a company’s history and not just its one month chart. You need as much information as possible.
If you pick stocks on a whim or with little research, you’re going to get burned. Day traders work hard to make their money. They do all of that research so that they get burned less often. Oh yes, you will lose some, but hopefully, you will win more often if you put in the time.
You also need to assess how much money you want to put into each trade. When it comes to taking risks, you want to know the entire picture. And when pulling the trigger on trade ideas, you might want to consider using stop-loss orders.
Diversity with your trades is also important, and you can bet that will keep you busy. Open up enough swing trades, and you’re going to be feeling like you’re running a full-time business. In all seriousness, do your due diligence when it comes to trades. If you search for trade ideas concerning specific tickers, the information is likely outdated, and you are late to the game. You might catch those stocks on the way down.