Stock Day Trading

Stock day trading became especially popular during the Nasdaq tech bubble. Virtually everyday, the high flying bull market seemed to continue to move up and up. All the day trader had to do was buy a popular tech stock in the morning and sell it at the close to capture a nice profit.

After the bubble burst, and the Nasdaq declined quite quickly, this type of day trading naturally lost much of its appeal.

Today, day traders do still trade individual stocks on an intra day basis. However, with the great volatility, leverage, and lower margin of futures markets and electronic trading of the indexes, there really is no great advantage to trading individual stocks. Trading futures or indexes need not be any more risky than common stocks if proper stops are used.

However, if a day trader insists on trading stocks intra day, then volatility is the key to picking the best ones to trade. High volatility and a trend following, mechanical approach will increase the chances for profitable intra day trades. Some day traders will pick only one volatile stock and day trade that one exclusively.

HLDayTrader can be used with common stocks to spot intra day trends, and is especially valuable with high volatile stocks that exhibit good intra day trends.

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HLDayTrader can be used in virtually all markets and time frames. We usually recommend 100 tick charts for intra day trading. Longer term charts, such as the daily time frame shown below, can be used to confirm longer term trends for intra day trading, or used for end of the day trading.

HLDayTrader is quite a versatile performer and can become the only method the day trader needs for all types of trades and markets.

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