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Short term  Market Overview 

Our short term sentiment

on 01/22/2008 

NASDAQ

DOWN

DJIA

DOWN

To see current chart click on the symbol above 

Market performance

Advances/Declines

Market Summary

Most up/down % filtered

Our best picks in Jan. 2005

 

Buy

 
01.11.05 AVII +98%
01.10.05 HBY +68%
01.05.05 CVM +52%
01.14.05 CTEC +43%
01.10.05 PRSFE +34%
 

Sell

 
01.07.05 TASR -75%
01.06.05 DOC -32%
01.03.05 NVTL -31%
01.14.05 FLE -30%
12.31.04 GTW -25%

The basics of our strategy can be recognized from our name – “Stock Next Day” which means that we select stocks a few days before we believe they will begin to move. Actually, we pick stocks today to trade them tomorrow. That means most of the stocks from our list have not moved yet in the desired direction, or not moved yet significantly. But! - different markets require different strategy!

Advanced technical analysis allows us to identify the best time to open or close a position. Combining the proper money management and the correct position management, this will allow you to receive continuous profits no matter which direction the market goes.

Most of the time price moves in waves that can last anywhere from a few weeks to a few months. Waves create a channel between two levels, the resistance on the top and the support on the bottom. When trend reaches one of those levels it usually reverses and goes back. But those levels are not permanent. They are changing all the time and because of this they make a lot of trouble for traders. We find the technical indicators we use to be most accurate and consistent. They show us when trend reaches some of the levels and the current trend direction. Click on the index in our “Market Overview” to see some of our indicators on-line we've selected for your reference. In the top window above the price chart you can see one of the indicators that most accurately shows the short-term cycles. Follow it and when the indicator is reversing down from the top – close the long position and open a short position, and when it is reversing up from the bottom – close the short position and open a long position. To increase your chances of profitability, search for the best opportunity and try to open a position before the price moves significantly.

An important part of our strategy is to follow the flow of the markets. It means to open mostly long positions on up-trending markets and short positions on down trending markets. This increases your chances for a profit by up to 4 times. When the trend reverses it’s better to wait until the reverse has been completed.

The next important thing in trading is proper money management. Proper money management means to spread your capital over different positions so you’re protected. Expectable loss of one position may never exceed 1-2% of your whole trading capital. In other words your investment in one position should not be more than approximately 10% of your entire portfolio.

You have to decide personally whether to use loss cut stop orders or not. Most of the professional traders make permanent profit because they cut losses quickly. Learn from professionals, not from the always losing mass. Free trading tips about loss cut stop orders you can find here.

You can use limit orders, especially if you have access to Level 2 quotes. If you see a good opportunity – it’s better to use simple market orders instead. Never place market orders before the market opens especially to open a position.

If an earning release is coming out soon it’s better not to open a position before the release’s contents are announced. You can access sites about earning releases in our links section.

And last: please remember - we are not giving any real investment advice here. Here we just share our knowledge and experience, and we suggest you to use all information here for educational purposes only. This is not an easy business, you need to invest a lot of time and effort to be successful, and our free stock pick is going to be just a little help.

The Risk of Loss in Active Electronic Trading can be substantial. Especially with the stocks with low price 

(Penny Stocks) and low volume stocks. You should carefully consider whether such trading is suitable for you. 

Please read: SEC's Speech on Online Trading.

Free Stock Pick on StockNextDay for successful trading!

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