Posted: 7/8/2012 1:39:46 PM
if you are not sure about the stocks and the run of the market , Do not try to just take a guess ..I can give you the indicators I use that I trade on . short term buy and sells ..
1. goto freestockcharts.com (use this site for this)
2. set the indicators for stochalstics. Leave it on the defalt settings . You will see 2 lines going up and down . Its hard to explain .. U will have a green line on top. (overbought) and a red line on the bottom (oversold) When the lines get below the red line (oversold) its a good time to get in at a good price . Also when both lines get below that red line , you wait for the slow line to curl and it looks like its ready to cross under the fast line . This is a great time to buy . The stock will move in the opposite direction because it is now oversold .
3. another thing I look for is if the 50 day moving average cross below the 200 and the stock has been on a down trend for a couple of months I ignore the stock . If the stock is trading above the 50 and the indicators above are in line I like the trade a lot .
4. goto stockfetcher.com its 8 bucks a month .. It will give you all the hot sectors and how they are performing for the yr , the month and week and so on. I start my screen to see what has made a good move for the week and screen the stocks in that sector . or when the market has been rough I see which sector has not taking a big hit as to the rest of the sectors ..
5. Look for news and financials .. If the companies last quarter was positive and the stock had a little sell off it might be time to buy because it is now oversold. Stochastics will tell you that .
To sum up BAC its a day trading stock and those guys just snipe it on a daily basis ..
I just got out or Smart balance SMBL I bought it at 5.05 and sold at 10.45 I bought it when the CCI was down ticking and the stock was oversold and the slow line was just about to cross above the fast line on stochastics .. I got lucky in between there because there was news . smart balance was buying a small company . Thatsjust luck . but follow what I said above and you will make a profit . I trade part time , because I work full time , I make a nice profit each month , and I use a regular account from Schwab .. good luck any questions feel free to ask ..