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Day Trade Alerts with Trading High

Volume Stocks

There are rainmakers on Wall Street  Street--vibrant, gifted, world beating heads. They're hired by the biggest hedge funds and investment banks on the planet. A number of them program trading robots, known as"black boxes" and create high frequency trading calculations, capitalizing on arbitrage opportunities between international markets and who knows what else or what next. If you are not one of these beautiful thoughts, if you didn't graduate MIT, do not worry; there is hope. It's possible to make a living out of trading without being a rainmaker. 1 means is to find out where it is raining and hold out your bucket.

When large volume comes into day  Trading stock alarms, there are significant price movement. It is possible to align with the price movement and ride the tide of volume to large gains. I call these installments"High Volume Runners." This afternoon trade alarms will allow you to recognize these stocks likely to have enormous price moves, and put you into these stocks at low risk/high reward entries.

The defining characteristic of this  Setup, apart from the significant price movement, is that the massive increase in volume relative to the stock's average.

What happens is some Sort of Significant catalyst occurs, for example a positive earnings surprise, a news story creating expectations of expansion, etc..  This may make a rush of both retail and institutional buyers into the stock, which generates demand and pushes the cost up.

Now that you know these huge moves Exist for day trade alerts, the next several chapters will teach you that the individual components you will want to be successful at identifying themcapitalizing on themand preventing the ones that you need to stay away from.

Fundamental Analysis vs. Technical Diagnosis 

These are two differing schools of · Fundamental analysis attempts to unravel what a business is really worth now and what it will likely be worth in the future, based on financial reports and underlying variables that affect the company and operations. Someone performing fundamental analysis of a stock is attempting to arrive at the value of an organization so as to compare that value to the share cost to ascertain whether the present cost is overinflated or undervalued regarding day trading alerts.

· Technical analysis assumes that the price of a stock has little to do with its"true value" and much more to do with how the sellers and buyers on the marketplace are reacting toward its own price.  Someone performing technical evaluation is attempting to forecast where the cost of a stock will be later on, based on graph patterns and mathematical signs.

Trading vs. Investing

Ordinarily,"investing" refers to a Longer term holding period and a focus on basic analysis; the concept is to buy value which will appreciate over time. "Trading" refers to a short term holding period and regular buying and selling with a focus mainly on technical analysis; the idea would be to take advantage of short-term fluctuations in price.

Bulls & Bears

Those market participants that think    Buyers are bullish; vendors are bearish. Of course you're hoping to get a bull fashion with day trade alarms.

Supply & Demand in Day Trading

Alerts

Are determined by demand and supply. For any given stock, the current cost of  And supply sinking the price lower. Those with demand for the stock are the Buyers, and those which have supply of the stock would be the sellers.

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Fundamental Training in Penny Stock Alerts

When buying penny stock alerts, It's very important to look at the level of support. Support is a cost level that a stock has historically had difficulty falling below, as a result of high demand in that particular price place. Imagine a group of several purchasers, all bidding around a specific price point; the requirement pushes up against the supply in the level. . Since there are far more buyers with demand for penny stock alerts than sellers with supply of the stock at that particular level, the cost has difficulty sinking under that amount.

Resistance, compared to support, Is a price level that a stock has had difficulty rising above, due to the large volume of distribution in that certain price place. In cases like this, imagine a set of several vendors, all selling their positions to take profits or opening brief positions around a particular price level. The cost can't rise above that amount because there's more supply of inventory from sellers than there is demand for inventory from buyers.

It is important to understand that,  Many times, resistance and support levels behave more like clogs than walls; meaning they're elastic rather than firm and static at exact cost points with penny stock alerts.

Support and resistance are just two of the  Most important suggestions to understand with regard to this trading strategy as knowing these levels permits you to make better choices about entering and exiting trades. We will discuss more about that later.

Liquidity at Penny Stocks

Liquidity is the measure of how

Readily a stock can be bought or sold without affecting the stock's price. The higher the trading volume, the more money that a stock has. Trading penny stock alarms with low liquidity is harmful because substantial price changes can occur very quickly on low volume. You need to be aware of the liquidity in any stock where you're considering opening a position. The way to judge a minimum amount of liquidity is by simply looking at average daily volume; stocks averaging over a million shares traded daily have enough liquidity for most trading dimensions. If you're trading little positions, you can move into lower liquidity stocks safely. Just be sure there's sufficient minute-to-minute trading activity to enable you to exit your position size without affecting the cost in any substantial way.

Volatility

 High volatility implies the price can change significantly over a short time period. In contrast, low volatility implies that a stock's price has a low range of price levels it's expected to strike for the near term future.

Penny Stock Alerts in Order Types

Market Order -- This type of order Guarantees you'll be filled (Your full quantity will be bought or sold.) , but it will be filled at the accessible cost (s) at that moment. When entering a market order, you cannot be 100% sure at what cost you'll be filled until your purchase is complete. This type of order is beneficial if you need to exit or enter a transaction quicklynonetheless, it may be harmful if the inventory has low liquidity, or if the price is moving fast. If you enter a market order when you see a stock at $X.XX, then you may be filled at a significantly higher or lower cost, based on present volume and your position dimensions. Limit Order -- This type of order  Guarantees exactly what price you will pay but doesn't ensure you're going to be filled with the full quantity you are trying to purchase or sell. When entering a limit order, you dictate the price at which you're prepared to buy or sell stocks. 

Or sell a stock when its price touches a predetermined stage.   These orders are powerful and helpful for gain security or loss limitation, as well as breakout entries.

Stop-Limit Order -- That is indistinguishable  To a regular stop arrangement, but instead of the stop tripping a market order, it activates a limit order. NOTE: Using stop Orders won't protect against overnight price gaps. Conditional Orders -- All these orders are Conditional on particular events. They include contingent orders, One-Cancels-All orders, One-Triggers-All orders, and One-Triggers-OCO purchase.  We are going to discuss these types of orders in Chapter 7.

Using Candlesticks (or Candles)in  

"Candles" are utilized in charts to Detail the cost action of a set period at a pictorial format. They're more useful compared to other forms of price action charting because they could reveal underlying belief (Is the current belief more bullish or bearish?) And potential reversals of opinion sooner than other kinds of charting.

After the candle is white (or green), the cost closed higher  Compared to the open to the period of time, so the open is at the bottom of the true body, and the close is at the peak of the actual body.

After the candle is black (or red), the price closed lower  Compared to the open for the period of time, so the open is at the peak of the real body, and the close is in the base.

Indicators

An indicator is a mathematical Calculation based on cost and volume, usually represented graphically below, above, or overlaid on a chart. You'll find hundreds, if not tens of thousands of possible indicators it is possible to use. We use only one indicator for this particular setup, simple moving averages.

Simple Moving Average in Penny Stock

Alerts

The average closing price over the last [x] number of days. 

Pullback

Also referred to as a retracement, a  Pullback is a decrease in price in the recent peak. A pullback can be a short-term dip in up momentum, representing a buying opportunity before the prevailing uptrend continues, or it can be the beginning of a full change in the fashion, in which case potential buyers should remain away, and those holding should plan an exit.

Through and over an established level of cost resistance. Usually, a breakout Is accompanied by a rise in volume and volatility. Normally, the more Volume accompanying the breakout, the greater the likelihood it will sustain its upward momentum. A price breakout with lesser volume or a lot of selling Pressure in the purchase price action is more likely to fail to keep on increasing in Price for penny stock alarms

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Daily Stock Picks Spotting High Volume

If you understand the investigation of Quantity and its corresponding cost movement, you can apply it to each potential trading in your everyday stock picks. There is not any indicator available that is more effective at showing one where the price of a stock is probably headed than quantity when analyzed regarding the price action associated with it (i.e. the candlestick).

Most traders now treat quantity as Background info --a mere afterthought to what their specialized signs are telling them.  This can be a mistake. If you are proficient at assessing price action and volume, then you really do not require any other indicators to be successful.

You'll need to understand candlesticks And what the various candle kinds signify. The cost action, as detailed through candlesticks, reveals the inherent battle between buyers and sellers and suggests where cost is likely to head. Ever since going into detail about the Various candlestick types and patterns would take an entire book, we will only cover the fundamentals. I strongly suggest that you pick up Steve Nison's novel The Candlestick Course to get a more comprehensive education on the subject.

When Using daily stock picks, try to Gain an understanding of the fundamental essence of the material. Don't get too hung up on hunting charts for the specific candle designs and types. More significant than memorizing the different candle types and what they signify is an intuitive comprehension of what the individual candle's various components (lower and upper wicks, real body, red or green) are detailing about the underlying struggle between buyers and sellers.

White or green candles signify a  Price move higher than the open of this period of time, whereas black or red candles represent a price move lower compared to the start of the interval.

Long candles (large  Cost movement) associated with big relative volume (large supply/demand) are exactly what you'd expect; this implies either the bulls (buyers) or bears (vendors ) are firmly in charge of the motion. A high quantity of supply from bears would be expected to make a large drop in cost. A high quantity of need from bulls would be expected to create a massive growth in price.

In contrast, brief candles (little  Price movement) are everything you'd expect with low relative volume (small supply/demand).

What to Watch For 

If you see a Brief candle (small  Price movement) with large relative volume (big supply/demand), this will cause you concern.

Spinning shirts are candles which detail  Doji are candles which detail a tight range between the high and the low, as well as the close and open.  What these candles are representing is that there's a considerable battle going on between sellers and buyers, with neither controlling the price actions.

A Hammer or Hanging Man is a candle With a very long lower wick, small real body, and little or no upper back. These indicate potential reversals. As you can see in the graphic, the candle is referred to as a hammer when appearing in a downtrend, along with a hanging guy when appearing in an uptrend.

 These signal the exact same possible trend reversals.

Second Consideration to Watch  For in Daily Stock Picks: Again, try to understand what is basically happening under the surface.  Throughout a downtrend when an inverted hammer appears, the extended upper wick represents buyer strength coming to play, driving the price up, though giving it away into the sellers to close in the bottom of the price range. It signals a possible reversal because the buyers are not as weak as they have been during the preceding downtrend. The reverse is the case of a Shooting Star, which looks during an uptrend. 

This should give you enough of a Foundation on candles for you moving with the high volume runner setup. You'll get better in identifying the inherent action of price movement as you put your analysis into practice.

And Keep in Mind, it's more important to Understand the character of what the candles are suggesting compared to know every distinct candle kind or multi-candle pattern. As long as you may look at the candles and understand what the elements are telling you, then you are going to be successful in trading daily stock picks.

Before we move on, and this can be  Important, understand that no one candle should be used to create any choice about entering or exiting a trade--ever. You should have patience. You need to take into account the whole picture by identifying support and resistance, assessing the price actions and associated volume, and looking at multiple time frames to confirm what's going on and what is very likely to happen.

Now on to quantity..

. Very Important

I've a trader colleague Who's very Big on"trading the information." He has CNBC always operating in the background of his office; he's got a dozen different internet windows open to each of the major financial news outlets. He believes he can get information through information, which may effectively be utilized as a border to trade profitably throughout his daily stock picks.

I asked him about it, and he said, "News moves costs ." I replied,"No it does not; buyers and sellers move costs ." He rolled his eyes, saying,"You know what I mean; the news causes sellers and buyers to move costs." That argument went , and in fact still does. In contrast to my colleague methods, I have completely abandoned all news resources for trading thoughts.

I will confess, on a certain level, he's  Right; a piece of news can be utilized effectively for lucrative daily stock picks, as the information causes a great deal of sellers or buyers to enter and move the price. The momentum they produce can be traded for profit. But, I assert that the same trade could be had without any knowledge of the underlying information, and that coming upon transactions such a way--without even knowing the information --is considerably more likely to bring about achievement. I will clarify...

When relying on information for trading 

1. You assume the part of information you discovered is significant enough to move the purchase price at all. 2. You presume you have identified the news ahead of the coming price motion, that the market has not already priced the information to the inventory. 3. You assume you are ready to accurately analyze which direction that particular news is going to drive the purchase price.

If the idea is to find news probably to  Cause enough volume to impact significant price movements, why not just start looking for the volume, and allow that volume and price actions dictate what's very likely to happen and, in reality, what is really happening, which means you can organize your entry appropriately?

News can Cause big volume spikes, but why waste resources and time and trust your uncertain decisions, trying to place your entry before a price movement which might or might not come?

Who cares what the news is, even if you Can find the volume and also capitalize on the purchase price movement with no?

Volume is much More easily analyzed than information, and scanning for big volume is significantly less time consuming than scouring the internet for news, which may or may not result in a fantastic trade arrangement.

Volume reveals the Validity of price movement for your everyday stock picks. It is the great equalizer between insiders and retail investors. If you are aware of how to find volume and how to test volume, virtually nothing could be concealed from you--maybe not institutional buying, not inherent bullish or bearish market opinion, not the probable direction of future price movement.

At minimum, you Want to understand This basic idea with daily stock picks: A. Price movements with high relative* Volume should be assumed valid, and cost movements with low relative volume  Shouldn't override what the higher volume price movement is telling you (*"comparative" to the typical volume for that particular  Stock).

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Swing Trade Alerts with Trading Stocks

First things first; you need to know how much money you are going to risk a trade in almost any swing trade alert.  To calculate your per transaction maximum reduction, simply multiply your account balance by your favorite risk figure (1-3%).

By Way of Example, if your threat   It should include entry and exit commissions, therefore conservatively we will state the maximum loss per trade is $140 (This is the amount that can lose in case your stop is hit, not the amount of capital you devote to a trade.) .

The reason I enjoy this method is Because as your account balance grows, it permits your trading size to increase; nonetheless, if your account balance is diminishing, it lowers the quantity of money you can lose on any 1 trade.

The following step is calculating the  Maximum number of shares you're going to be allowed to purchase while honoring your highest allowable loss. This number will fluctuate from trade to trade based on the purchase price of your stop-loss exit along with your entrance price.

At the high volume runner setup, We will typically know our stop-loss before our true entry cost.

Account Size Required for Swing Trade Alerts

NEWL went on to get delisted from Nasdaq.

On July 22nd, it reopened at $2.55 and plummeted

From there. This type of trading halt and subsequent delisting rarely occurs, but be aware that it does. And life is not honest; it could happen to you.

Incidentally, there were over 30 MILLION  Stocks exchanged in NEWL the day it was halted. A lot of people lost a lot of cash daily. I'm sure you've heard previously, "Don't trade with money you can not afford to lose." This is a little unrealistic, in my view, and seems more like a disclaimer than actual advice. Here is some honest advice: be conservative, not risk more than 1-3% of your capital on any 1 trade, be careful any time you have more than 25 percent of your overall funds at play in any one trade, and only be aware of the risk involved with trading, even Forex Currency trading. Be smart.

If your account balance is below  $25,000 (and you've got a margin account), you're going to be subject to"pattern day trading" restrictions, which means you can't make more than three transactions in a rolling five-day period. It's a law that is foolish, but you're at its winner nonetheless. Make sure that you're aware of your online broker's particular therapy and interpretation of pattern swing tarding (Some brokerages count numerous orders of one inventory as a single trade, but some count each individual purchase as a new trade). The pattern day trading  Free Riding is another idiotic SEC restriction, but, alas, you're subject to it however. For reasons I can't fathom in this Day and age, inventory trades with your online broker take three days to settle. You cannot use the proceeds from a sale of inventory to buy a different stock until the proceeds from the sale have"settled" This means if you are in a trade utilizing your entire account balance, and you depart, you won't have access to that equilibrium to place another trade for three days.

With a non-margin accounts below $25,000, you need to be selective with your swing trade alerts only enter perfect setups (We will get to the way to identify ideal setups soon ).

Psychology in Your Swing Trade Alerts

Equally significant to managing your risk is the mental area. When I was always losing money Or just scraping by with marginal profits, I'd often enter market orders when I found a stock I wished to enter. I was constantly fearful that I'd found a huge commerce but it was carrying off that instant, seconds after I had found itif I did not get in today, I'd miss it.

After I shifted my mindset to the new Thinking of"master just a few installments," I ceased pursuing entries. I rarely placed market orders no more, unless it was okay per the parameters of this setup (We never use market orders in this installment ). In the majority of my setups now, I put a tight range of bids where I believe strong support to be, so I have a minimal hazard cease under my entry degree. Lots of times I miss swing trade alarms, but that is ok; you will find others soon to come.

That recently found patience left a huge Difference in my profitability. Rather than hitting the marketplace to put in a trade, I patiently sat with bids at a level where fear would drive the psychological traders out, and they would market into support. If you see a place of support however, you believe the trade has moved over it, never to return, think again. 

It may take a few days or perhaps weeks, but it is going to come down again to allow a minimal risk, high reward entry.

Your enemy. The emotions you will feel, the hopes and fantasies you have for the commerce, your view about where the price is going, the fear that you are likely to miss out on a gain if you don't get in the trade at this very moment--all these ideas are working against you. You need to turn off everything but the analytic, logical part of your mind. This can be easier said than done, but there are tools which can help.

One is your stop-loss order.

Don't Use a mental stop in your Swing trade alarms? The moment you execute an entry arrangement, execute the stop-loss sequence to sell. Then move it higher to the break-even point as soon as the cost action allows (more detail about this later). In this setup, you will have the ability to input a chronological arrangement, which will implement your stop order automatically as soon as your order is filled.

You Have to develop a headline:

"There will always be another swing commerce  alert."

Learn it, know it, live it.

Weeks or More can go by without a legitimate, best green flagged setup seeming. Hold steady and trust that one is coming; these setups will last to show themselves. You cannot force a good high volume runner setup. Patience alone could actually be enough  Of an edge in the market to be successful, as long as it's patience for a good entry. 

It's ok to skip a trade. The worst Thing you can do is hit a market purchase since you think the stock is running, and you believe you have missed the entry.  The possibilities of your market nailing the ideal price at the specific time of your implementation are next to nil.

Every dollar you shed trying to force  A trade or chase an entry is a dollar that isn't there for you when a 50%, 100%, 200%+ runner shows up.  Just enter a trade according to the low risk parameters of the installment, which we will get to.

Never chase an entrance. There will Always be an additional trade. And one last time for good measure...

NEVER CHASE AN ENTRY.  THERE WILL

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Finest Stock Picking Service for Profit

Step One -- Identifying Possible High   In addition, we have a secondary, redundant scan searching for stocks up a minimum of 6% to the day, together with the stock picking service.

As the stocks are alarmed we first Confirm that they are liquid enough to pay for stock picking service.

Step Two -- Qualifying the Installation in Red Flag Review at Stock Picking Service:

1) Is There a considerable price resistance degree (s) overhead depending on the weekly or daily chart? 2) Are There any abrupt price crashes at the nearby past that could mean former buyers carrying through those crashes will seem to sell for a opportunity to break-even? 3) Is The gap up from the prior day large enough that present holders will likely be scrambling to sell to take profits? 4) Where are the medium to long term Straightforward   If they are above the present price, they may function as areas of powerful marketing.

Green Flag Review at Stock Picking Service:

1) Is There a considerable degree of buying support immediately under the present price level based on the weekly or daily graph? 2) Is The cost action during the last 3 to 12 months in a tight range with light quantity? 3) Is The current cost at or about to be in a brand new long-term high? 4) Is The present cost breaking above long to medium term simple moving averages?

Step Three -- Entering the Order:

After qualifying a potential installment we Determine our trade dimensions by a mental calculation or utilizing the'trade size' excel tool. We then prepare a One-Triggers-All submission arrangement.

The Buy order we enter is a 'Stop-Limit' purchase, together with the halt price set at $0.01 higher than the maximum cost of their initial 15 Minutes, and also the Limit price set at a few cents greater than the cost.

The supermarket purchase (our Stop-loss / Reduction limit order) portion of the One-Triggers-All entry is set as a"Cease on Quote" order.  If hit, the order becomes a market sell order to exit the transaction for a little loss.

Step Four -- Managing the Purchase & Taking Gains:

You've identified levels of potential  Resistance through your red/green qualifying inspection of the installation. Your immediate consideration, if your entry order has implemented, is to determine if the price is quickly rising into this amount of likely immunity; if so, consider profits at this level or move your stop up just under this degree to protect your gains and remove the risk of loss.

Monitor the trade using a 5 minute chart. As new Highs are set and pullbacks happen, kindly move your stop loss order up under these new highs and pullbacks to eliminate risk and lock in gains. Always be cautious of the immunity levels you've identified and act accordingly.

Examine the volume/price action Combination and trust what the volume and candles are showing to you about the likely movement of the price.

Measure 5 -- Post Trade Analysis:

Keep a trade journal of every transaction  You input, and run"post-game investigation", like you're watching game tapes. Consistently assessing your trade performance is the perfect way to enhance.

The weekly & daily graph for your commerce, and a screen shot of a full day's 5 minute chart for your commerce. Notice your entry price, your original stop degree, any subsequent moves at the stop, and your exit price.

Look at the stock picking service and Weekly chart, how did your red/green flag review hold up? Did you miss anything?  What'd you get right?

Will shake us from this trade and leave us missing a massive movement. Occasionally it'll happen and it is inescapable, other times it happens because we browse the cost action wrong, or we did not find appropriate immunity levels, etc..

Keep a detailed trade journal and Focus on constant improvement. Assess and enhance, repeat.

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Daily Stock Picks Spotting High Volume

If you understand the analysis of Quantity and its corresponding price movement, you are able to apply it to each potential trading in your daily stock picks. There is no indicator available that's more capable of showing one where the cost of a stock is likely headed than volume when examined in relation to the cost action related to it (i.e. the candlestick).

Most dealers now treat volume as  That can be a mistake. If you are proficient at analyzing price action and volume, then you truly don't require any other signs to be successful.

You'll need to understand candlesticks And what the various candle types signify. The cost action, as detailed via candlesticks, reveals the underlying struggle between buyers and sellers and indicates where price is very likely to head.

Since going into detail about the Various candlestick types and patterns would take an whole book, we'll just cover the basics here. I highly recommend you pick up Steve Nison's book The Candlestick Course to find a more comprehensive education on the topic.

When Using daily stock picks, try to Gain an understanding of the fundamental basis of the material. Do not get overly hung up on hunting charts for the specific candle types and patterns. More important than memorizing the various candle types and what they signify is an intuitive comprehension of what the person candle's various elements (upper and lower wicks, real body, green or red ) are detailing regarding the underlying battle between sellers and buyers.

White or green candles represent a  Price move greater than the start of the period, while black or red candles signify a cost move lower than the open of the period.

Long candles (big  Price movement) related to large comparative volume (large supply/demand) are exactly what you would expect; this means either the bulls (buyers) or bears (sellers) are firmly in control of the movement. A high volume of supply from bears would be expected to make a large drop in cost. A high volume of need from bulls would be expected to make a massive growth in price.

In contrast, short candles (small  Price movement) are what you'd expect with low relative quantity (little supply/demand).

What to Watch For in Daily Stock Picks

If you see a Brief candle (small  Price movement) with large relative quantity (big supply/demand), this should cause you concern.

Spinning tops are candles that detail   What these candles are representing is that there is a considerable struggle going on between buyers and sellers, with controlling the price action.

A Hammer or Hanging Man is a candle With a very long lower wick, small real body, and little or no upper back. These signal potential reversals. As you can see from the graphic, the candle is called a hammer when appearing in a downtrend, along with a hanging guy when looking in an uptrend.

An Inverted Hammer, or Shooting Star,

Is much like the Hammer and Hanging Man, the difference being they've a long upper wick rather than a long lower wick.  These signal the same possible trend reversals.

Second Consideration to Watch  For in Daily Stock Picks: Again, attempt to comprehend what's fundamentally happening under the surface. Throughout a downtrend as soon as an inverted hammer seems, the long upper wick represents buyer strength coming into play, forcing the cost up, though giving it away into the sellers to shut in the bottom of the price range. It signals a potential change because the buyers are not as weak as they have been throughout the preceding downtrend. The opposite is true of a Shooting Star, which appears during an uptrend.

This should give you enough of a Foundation on candles for you moving with the high volume runner setup. You'll get better in identifying the underlying action of price movement as you set your analysis into practice.

And Keep in Mind, it is more important to Understand the essence of the candles are indicating compared to know every different candle kind or multi-candle pattern. Provided that you may look at the candles and understand what the components are telling you, you'll be successful in trading daily stock picks. Before we move on, and this can be  Important, understand that no single candle ought to be used to create any decision about entering or exiting a transaction --ever. 

You should have patience. You have to take into account the whole image by identifying support and resistance, assessing the price actions and related quantity, and looking at multiple time frames to confirm what's happening and what is very likely to happen.

Now on to volume...

Volume in Daily Stock Picks -- This Is  Very Important

I have a dealer colleague Who's very Large on"trading the news." He has CNBC always running in the background of his workplace; he's got a dozen distinct internet windows available to all the significant financial news outlets. He believes he can get advice through information, which may efficiently be utilized as a border to trade profitably through his daily stock picks.

I asked him about it, and he said, "News moves prices." I replied,"No it does not; buyers and sellers move costs " He rolled his eyes, saying,"You know what I mean; the information causes sellers and buyers to move prices." That argument went on, and actually still does. Compared to my colleague's methods, I've completely abandoned all news sources for trading ideas.

I'll admit, on a certain level, he is  Correct; a piece of news may be used efficiently for profitable daily stock picks, since the news causes a great deal of sellers or buyers to enter and move the purchase price. The momentum they produce can be exchanged for profit. But, I argue that the exact same trade could be had with no understanding of the underlying information, which coming upon transactions this way--without understanding the information --is much more likely to result in achievement. I'll clarify...

When relying on news for trading 

1. You assume the part of news you found is important enough to move the price in any way.

2. You assume you have identified the information ahead of the coming price motion, that the marketplace hasn't already priced the news into the inventory.

3. You assume you are able to accurately assess which direction that news will drive the purchase price.

If the idea is to find news likely to  Cause enough volume to effect significant price movements, why don't you just start looking for the quantity, and allow that volume and price action dictate what's very likely to happen and, in fact, what is really occurring, which means that you may plan your entry appropriately?

News can Cause big volume spikes, but why waste time and resources and trust your uncertain conclusions, trying to position your entry before a price movement that may or may not come?

Who understands what the information is, if you Can discover the volume and capitalize on the purchase price movement with no?

Volume is much More easily analyzed than information, and scanning for large volume is infinitely less time consuming than scouring the internet for information, which may or may not lead to a good trade setup.

Volume reveals the Validity of price movement for your everyday stock picks. It is the great equalizer between insiders and retail investors. If you know how to find volume and the best way to test volume, virtually nothing can be concealed from you--maybe not institutional purchasing, not inherent bullish or bearish market opinion, not the probable direction of future price movement.

At minimum, you need to understand This fundamental idea with daily stock picks:

A. Cost movements with high relative* Volume should be assumed valid, and cost movements with low relative volume  Shouldn't override what the higher quantity cost movement is telling you (*"relative" to the average volume for this  Inventory ).