Thursday, April 23, 2009

Day trading or patience

That is the question. In this market, you can make a trade for a quick 1 or 2% profit and RUN! That is really high risk venture. Once I lost big on trying to do that. So now I wait with patience for stress tests. My hunch is that there are a lot of people feeling bullish now, but are a little bit afraid. Some of them are chasing the market every now and then. That is why the market is not able to make a decisive move down. I was watching cnbc today (Fastmoney) and someone said the same thing on the show that people are really only chasing and the shorts don't want overnight positions. There is no way to consistently predict the gap up or gap down next day. But if you see the tone of the market before open, there is a way to make a little money between open and close position 1/2 hour later. But I am usually at work in that time. So no good for me. The rest of the day is really impossible to play consistently.

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