Easiest Stocks for New Traders!

In my limited experience, a lot of times those "tails" or candle shadows are out of market prints and do not reflect the battle at the B/A line at all.

If your not watching the T&S, the out of market prints can imply a volatility that is not really there. The more shares a stock turns the more irregular prints you'll see.
(INTC,CSCO,MSFT,SUNW,etc)


regards/greg
 
When I learned this business. We were told to focus on gold
stocks and day trade them, if you are a hard EDAT nasdaq
guy this obviously won't work for you. TRading gold after
the metal has obvious advantages, there is a lead indicator
yet the follow up is not madatory or instant. You can try
it with any sector. after all some serious money has been
made this way on the street. Get the leading/falling sector buy/sell the leader in a dog or fav, gold trading is similar.
 
Originally posted by praetorian2
Trade DIS. I am seriously contemplating giving up most other trading but DIS. It is just too easy.
More...

I'm new and this discussion is very helpful. DIS does look good and I'll work with it along with a couple others to get my feet wet. Thanks guys..................
 
What is it about DIS that makes it easy to trade?

When I traded F there were a few things I could count on; it turned on pivot points (or withing a few cents), it was easy to get fills and it usually turned or reversed at 10 AM and 12 PM. I don't remember it rallying after noon. I never made much per trade but I could count on it.

 
You won't make much on dis either. Just a bit more than F. But it's reliable. If you take 3-8k positions, and you usually get 3-10 setups a week, you can make 2-5k a day. I can't describe my strategy, just b/c of liquidity concerns. If I could buy 15k at the bottom each day, I would. Usually I only get 5k or so.
 
P2,

Without giving away your strategy, are you generally usig intra-day charts, or reading the Time & Sales to determine your entry/exit points when trading stocks like DIS?

Also, on stocks like MO, DIS, F, etc., if you were to see a large bid or ask size, is that usually considered genuine, or a headfake by the specialist?

I know when I used to trade some really thin stocks like TSA, I would regularly see Bid or Ask sizes of 50k to 100k. Those were usually reliable because you could see them disappearing as the order flow came in.
 
It depends a lot. Really big size is fake on mo. Especially if you see a lot of little trades going off on the bid. It's really hard for me to answer and not tell you too much. Liquidity is a problem. I watch the intraday charts and daily ones. But I use the t/s and the specialist's posturing for confirmation. Who knows. I lost a streak of 34 straight wins on friday, and I took 2 days off from it. Today is my first day back on the case, and I only took a k on my first scalp (I wanted 7k, but there was only enough for me to get 1900 shares), but I was the high print on that bounce when I sold at .45. Basically, you just have to watch him very close. When you're wrong, just fade in, and you can always get out for just a small gain. Unfortunately, you need to hold overnights a lot of the time if you want to catch the biggest moves in DIS.
 
Liquidity concerns trading DIS? It averages 5 million a day. Hmmm? I studied on DIS yesterday and saw the big buying at the close and wondered how much he'd gap it down? Nice.

Question: Does the specialist for DIS (in your experience) use the same "play book" over and over? I found that Ford did. Thanks

Also... what is meant by really big size? 25K...65K... 150K?
 
Dis has like a half dozen plays, he just cycles through. Big size would be 60k, but I don't think he uses size to bluff. Liquidity concerns means that I won't buy more than 5-8c above the low. And there are rarely more than a few k there. Most trades in those hour long intraday bands.
 
Praetorian2, thank you for the details.

OK Newbies... you know how to do it now. Start with paper, go to small shares when you are correct 90% or so. Good luck.
 
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