5 Online Trading Tips You Must Obey 1.
Do not go against the 200 day moving average.
The only move to make when a stock is below the 200 day M.
A.
is shorting.
The statistics do not lie.
In fact, research over the past ten years shows significant difference in trading long above the 200 day MA verses not doing so.
This indicator is a favorite of portfolio managers, analysts, investors and traders.
This is "Compare Online Day Trading Tips" number one.
2.
Buy at support and sell at resistance.
The reason is similar to the aforementioned 200 day MA..
Everyone is seeing the same thing and mass buying sees very good results and mass selling the opposite.
This is "Compare Online Day Trading Tips" number two.
3.
Buy at new lows and sell the highs.
When markets drop, shorts finally turn a profit and get ready to cover.
Warren Buffet's advice also holds for the short term.
"Buy when others are selling and sell when others are buying.
" This is "Compare Online Day Trading Tips" number three.
4.
Buy stocks at their high after 1:00 pm EST.
These stocks tend to continue going higher until the close.
Often it is a good idea to take these stocks home and close out the next morning.
This is especially true if volume is confirming the move.
This is "Compare Online Day Trading Tips" number four.
5.
If you do not have a reason to get in the market stay out.
It is OK to stay on the sidelines if you do not have a good reason for getting in.
Violate this rule and you will often live to regret it.
This is "Compare Online Day Trading Tips" number five.