The past few days I have been finding good success in going long strong stocks that open weak. Doing my premarket research and setting a game plan of 3-5 stocks to watch. These are stocks that were very strong the previous day. I 'hope' for a weak open or a gap lower and then i zoom down to the 1 and 5 min. time frames and look for 'corrective' declines and then get long and ride out a reversal. Needless to say, I had some amazing trades which i sold way too early i.e. POT on friday, opened down $2-3, then went on to rally $10. At least i made about $1500 on it.
HES, today worked out great. it opened $.40 cents lower, decline looked corrective and i went in with 1000 shrs right away and the stock never looked back. I could have milked some more out of it as evidenced by the chart but i am pretty happy.
These past few days, i have been doing well with this strategy. i make my money early, usually done by 7AM(pacific time) and i am done for the day. 1-2 trades per day. Simple, no over trading, trade the very active first hour reversals, avoid the afternoon chop. Come back at noon and see if there's anything else worth playing.
happy happy :-)
No comments:
Post a Comment