Which is the Best Way to Trade Stocks Given an Up/Down Move in the Index?

[USDJPY]

Other than trading the futures themselves, if you sense the S&P/Nasdaq will rise/fall intra-day or overnight what is the best way to trade individual or groups of stocks that will rise/fall with the market?

 

[tommcginnis]

Buy the rising stocks; sell the falling stocks.
Rinse; repeat.

 

[USDJPY]

Buy the rising stocks; sell the falling stocks.
Rinse; repeat.

But how did that do in the flash crash?

 

[Neuroway]

There is really only two trading strategies in any market. Trend Following and Mean Reversal. You either buy a falling market (Mean Reversal) or sell it (Trend Following). There is no best way. Just two strategies, and once a position is taken, if you change the strategy, you lose money. It's as simple as that.

 

[777]

Other than trading the futures themselves, if you sense the S&P/Nasdaq will rise/fall intra-day or overnight what is the best way to trade individual or groups of stocks that will rise/fall with the market?

How do you sense this?

 

[tomorton]

How about trading the market itself using an index ETF or suchlike?

 

[learner2007]

if you sense the S&P/Nasdaq will rise/fall intra-day or overnight

Trying to sense the market's direction makes no cents!!
Instead, ask the market, and listen to what it's telling you. But don't hear what it ain't sayin'!!

 

[tommcginnis]

But how did that do in the flash crash?

 

[spindr0]

Buy the rising stocks; sell the falling stocks. Rinse; repeat.

Aren't you worried about your stocks getting wet ???

 

[Overnight]

Ack sorry, don't know why it comes out so huge.