- Find stocks whose price movements closely follow those of the S&P Index Futures.
- Identify ten stocks that have performed well at the beginning of the year.
- Take note of each stock’s yearly opening price.
- Identify each stock’s support and resistance levels.
- When the price is above the yearly open and resistance has been broken, buy when the major index futures confirm.
- In case the major futures indexes confirm, sell when the price is below the yearly open and support has been broken.
STOCKS TO CHECK FOR DAY TRADING
1.To trade stocks, follow the steps listed in the check list.
2. After the first hour of the session, do not trade.
3. Wait until news settles before trading.
4. Trade in three-unit increments.
5. Exit with a profit of 30 to 40 cents on a large portion of your investment (two-thirds to three-quarters).
6. Initially place a stop for protection. After exiting two-thirds to three-quarters of positions, move the stop to breakeven for the remaining shares.
