newbie strategy, would it work?

J

jugiproject

I am new to the daytrading scene, but i have been swing trading for 1 year or so now. I was looking to open an account to daytrade soon and was curious about a few things. I hope someone can clear these questions up for me.

I was thinking i would strictly trade lot priced high volume stocks like FNSR JDSU, 5k-10k blocks, and sell for 3-5 cents. Is there enough liquidity for this to work? and could this idea really work?If it wont work, please tell me the flaws that exist in this idea.

Can you short these lower priced $2-5 stocks like JDSU and FNSR?

and finally


Will it be easy to get fills for these types of liquid stocks? I plan on holding my position for a few minutes thats why i ask.

positive or negative feedback, all comments are welcome.
 
Quote from jugiproject:

I am new to the daytrading scene, but i have been swing trading for 1 year or so now. I was looking to open an account to daytrade soon and was curious about a few things. I hope someone can clear these questions up for me.

I was thinking i would strictly trade lot priced high volume stocks like FNSR JDSU, 5k-10k blocks, and sell for 3-5 cents. Is there enough liquidity for this to work? and could this idea really work?If it wont work, please tell me the flaws that exist in this idea.

Can you short these lower priced $2-5 stocks like JDSU and FNSR?

and finally


Will it be easy to get fills for these types of liquid stocks? I plan on holding my position for a few minutes thats why i ask.

positive or negative feedback, all comments are welcome.
More...

For a few minutes holding period, JDSU will not move 1 cent, and you might not even get fill by bidding and offering. It's easy to get fill by hitting the bid and ask. In short, you will lose money trading this way. I think if you need someone to clear up your questions for you, you are not suitable to day trade JMHO. After all, you can easily get your answer by watching the intraday chart...
 
Hi. Is there a specific reason that you're shifting your focus away from swing trading?

I don't know much about trading stocks, so I can't address your technical questions. However, I do know that you can short these stocks if your broker has access to shares (your broker should have a running list of issues available for shorting) and typically issues with a share price under a certain amount can't be margined at retail brokerages (I think the cutoff is usually around $5/share).

Good luck.


Regards,
 
do you know what a level 2 is? if so watch your stocks on it, pretty straight forward of what time frames youll be looking at to get in, your looking to scalp, so level 2, tape, tick charts, good internet connection, start with 100 shares, you wont make money, but youll find out how not easy this can be.
 
Quote from JangoFolly:

Hi. Is there a specific reason that you're shifting your focus away from swing trading?

I don't know much about trading stocks, so I can't address your technical questions. However, I do know that you can short these stocks if your broker has access to shares (your broker should have a running list of issues available for shorting) and typically issues with a share price under a certain amount can't be margined at retail brokerages (I think the cutoff is usually around $5/share).

Good luck.


Regards,
More...


No reason for switching over from swingtrade, i normally swing trade otcbb and pinks but sometimes its so slow so i was considering daytrading. Anyway thanks for your replies, i think i stick to what i know. Atleast for now
 
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