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Day Trading Stock and It's a Panic

Posted by James Breen at 22 September 2008 9:3

A colleague asked us to try day trading store last weekend. How brave is that? That is one leaf that fell very far from the ranking.

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I want to set blunt a contradiction that's been irking me for the beyond few weeks. While the news media has been reporting slips, falls, and fluctuating markets, the actions of the people in attack have been untainted adrenaline. Another word for that is panicking. Since when do central officials fly to Wall Street on weekends to adviser bulky bailout deals? Is this not panic? How about chief, historic investment houses abruptly converting into land companies on a Sunday? People don't ..Read the rest of this forward.

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  • Watch the demand for shares by looking at the Volume % Change for each of your stocks. It will show you immediately how much a stock traded vs. its average daily volume over the last 50 trading days. For example, a stock that trades 100, 000 shares on average will have a 50% Volume % Change if it trades 150, 000 shares on the day.
  • Stocks closing at their highs for the day or gapping up in price can indicate strong demand.
  • Companies buying back their stock in the open market and companies showing stock ownership by management can be positive indications.
  • When a stock breaks out of a price consolidation area, trading volume should be at least 50% above its average daily volume, indicating strong demand.
  • In many cases, a strong stock breakout will see volume up 100% or more for the day, indicating solid buying and the possibility for further price increases.

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