Day Trade

How to play Day Trading in the Shares Market

A lot of people apply one theory to do his investment of shares, because they always believe one theory is enough. In my opinion, shares in a thing. It does not move itself without any demand and supply. Who created this? It can be me or your or third or forth party. The interesting part your did not who already become your opponent party or same party.

So, let us analyse the movement of shares price may happen in the last few minutes to close.

a) Close price at day high

Base on above movement, normal circumstances indicate this particular share tomorrow may open high also. I personally 70% agree the share may open high, but please study the followings: -

1) Is it the higher volume done with the higher price in the closing time? If yes, the chances of higher price at tomorrow is 90%.
2) Is it the Best buy and Best Sell price firm at every level in the final minute? If yes, the chances of higher price at tomorrow is 90%.
3) Is it the higher price achieved by way of jump to close? ( Meaning close by way without doing the deal like 21 and 22 cents not done, but close at 23 cents) The chances of higher price at tomorrow only have10%.

b) Close price at day low

Base on this above movement, the chance share price drop at tomorrow drop is 70% because: -

1) Is it the higher volume of sell achieved at this lower price? If yes, the chances of lower price at tomorrow is 90%.
2) Is it the Best sell volume higher than Best buy volume in the last minute? If yes, I can say that tomorrow price registered lower again.
3) Is it the opening price higher than closing price? If yes, tomorrow price is 90% drop again.

You may wonder why the above prediction only 90% accurate because you should consider the uncertain issue like: -

a) War, Earthquake and flood may happen at tomorrow.
b) Bad news announce at tomorrow.
c) Overall market sentiment not good.
d) Influence by other market.

Always remember Human act can not against the natural act. Uncertain issue impact into the market, you must make fast decision to minimise you lose.

Learn the shares price dropping character better than you predict the higher price. Similar if you well know a people character, you can prevent argue and accept his mistake. Predict the individual run easy than predict the overall market up or down, because overall market up/down does not mean you investment may follow. Hence, please do not bring this pressure on yourself. Forecast the future is “GOD”s duty. As a human shall not involve and participant.

Every share has its own difference character, well know their specific character may help you minimise the loss. Like: -

a) Some share every season/every year has a move and achieved the high price.
b) Some share every year must registered one time at certain price.
c) Some share follows the government policy.
d) Some share follows the world market sentiment.
e) Some share frequently achieved higher and lower price in one-month time.

However, do not forget the characters may change time to time because of environment has changed. So, updating the data/information frequently is very important.

When you understand the particular share movement, it can help you earn the marginal profit. If you smart, the particular share investment brings you a lot of stock in hand by zero capital. Example, if Monday you invest A shares at 100,000 shares at 50cents each, you can sell 92,000 shares at 55 cents to cover the cost. The balance of 8,000 shares as a zero capital shares in hand. (Zero capital means that you no need take out any funds for this investment, does not mean that it did not attach any cost). The advantages if the bad sentiment market happen in the next day or future, you are felt no pressure on this investment.

Furthermore, being a good trader always keep your eye in others counter instead of eyeing you investment only. Because when you eye only aim for 2 or 3 counter, it is yourself block your vision to see more and learn more.

At last, my opinion is while market is bad/down. You should spend more time to study. It brings you easy understand more to the market.



Write on 29 June 2007 by kacaubusy.