“Wolf of Wall Street” is a movie that inspires many people to start trading the markets. There is a good possibility you might have opened your trading account after getting inspired by DiCaprio’s rich lifestyle.
As a beginner to the stock market and owning a new trading account, You may be now wondering what to do next ?. This article helps you get started trading the stock markets.
You can trade the markets by being an investor, a swing trader or a daytrader.
If you have made up your mind to become a daytrader. You need to frame a strategy to trade the stock market. “Trading Strategy” sounds like a complicated terminology but is not a rocket science. The strategy here can mean a trading plan on which you decide to trade the markets.
The basic daytrading strategies for a beginner trader:
1) Open=Low , Open=High.
- BUY stocks when the opening price of a stock is same as the Lowest price for the day.
- SELL stocks when the opening price of a stock is same as the Highest price of the day.
2) 1 hour Opening Range Breakout.
- BUY stocks when the price crosses the highest value of the first trading hour.
- SELL stocks when the price crosses the Lowest value of the first trading hour.
3) Price above Yesterday High / Price below Yesterday Low:
- BUY stocks when the price crosses above the Yesterday’s Highest Price.
- SELL stocks when the price crosses below the Yesterday’s Lowest Price.
4) Closing Range Breakout:
- BUY stocks when the price crosses the Highest value of the trading range till 2:45.
- SELL stocks when the price crosses the Lowest value of the trading range till 2:45.
Use the above article only as a strategy index guide for your further study and research. Plenty of articles on the internet that helps you determine your risk and reward for the above discussed strategies.
Stocks matching the above conditions can be screened using the Free FataFat Stock Screener.