Best Stock To Day Trade - January 18, 2012

Have a look at this video about today's top day trading stock.


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Best Stock To Day Trade

Travelzoo was today's best stock to day trade. At bestdaytradingstocks.com, we like to use an opening range breakout strategy after identifying potential stocks for day trading opportunities. Check out the chart below to see what we mean!

Scott Cole
www.bestdaytradingstocks.com

Best Stock To Day Trade

U.S. stocks closed with marginal gains once again on Monday, continuing the pattern in place since last Wednesday. The overall trading pattern during the day has been repeated for a few days now...weakness in the morning due to ongoing European issues, and a very modest rally beginning after the European close.

The trading patterns are somewhat mixed...the Dow and S&P 500 look like they are ready to explode upward, while the Nasdaq and small cap averages are more mixed.

One stock I definitely do not like now is Google. Google had broken out recently to 52 week highs, with a nice basing pattern going back about one year. Today, it closed down over 4%, and formed an island reversal pattern in the process, due to the gap down. It closed below its 34 day EMA for the first time since late November. If there is follow through, expect some weakness in the NASDAQ.

Biotechs lead the way upward today, lead by Inhibitex, which is being bought out. It was up 140% today...yes, 140%! Unfortunately, it was not a good day trading move, as it opened high, and then traded in a narrow range.

Our daytrading stock of the day still offered plenty for the day trader. MDVN opened at $49.57, and closed up near $53.00 today. See the chart below.

Scott Cole
www.bestdaytradingstocks.com

Best Daytrading Stock - January 3, 2012

U.S. Stocks opened strongly to start the new trading year, but failed to build onto these gains, and closed a bit off the highs. As a result, the best performing daytrading stocks were highly focused in the oil and gas industry due to the strength in energy prices today, as crude oil closed up over $3 per barrel.

There were a number of stocks with gains in the 8 to 10% range today. Based upon our basic daytrading strategy, the one candidate that stood out is Nabors Industries, which closed with a nearly 10% gain. The intraday chart of this stock may be seen below. Our strategy would provide you with a gain of about $1 per share....not bad for a stock priced under $20!



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Day Trading Tips For The New Year

2011 is behind us, so it is time to renew our energy and focus on the new year! Here are a few tips to jumpstart your daytrading profits.

1. Pay close attention to intermediate term stock market trends. If you can stay on the right side of the market with your day trades, you will be more profitable. This all starts with identifying the current trend in the market.

2. Learn how to read the tape. When you can stay on the right side of the tape, and trade in the direction that the big money is flowing, you will put the odds more in your favor.

3. Don't trade just to trade, or just for the action. Most traders I know are amateurs, and they trade for the thrill of trading. Learn how to treat day trading as a business, don't get emotional, and you will become a better trader.

4. Stick with volatile stocks with decent volume. It makes no sense trying to scalp a few pennies in Microsoft when you can hop on board a fast mover and grab a few dollars!

5. Set goals. You should set goals regarding the success of your trading business. If you are relatively new to trading, you should simply strive for being profitable every month. Most traders are not close to being profitable each month, or at all for that matter.

6. Develop your trading plan and stick to it! Many traders are always changing strategies, looking for the holy grail. There isn't one. So develop a basic and sound strategy and stick with it!

Going forward I will be presenting a lot more tips and thoughts to help your day trading success, so keep stopping by!

Scott Cole
www.bestdaytradingstocks.com

Stock Market Commentary - Correction Has Begun

U.S. stocks posted a follow through day to the downside yesterday, effectively ending the rally that began late last summer. In order to offset this price action, a huge upside day will be required. What could be the catalyst for that? A big number in this week's employment report. This morning, the ADP gives the first glimpse at Friday's employment report, but it has not been a very reliable indicator of the government number in recent months.

If the number is over 300,000 new jobs on Friday, I suspect there could be a spike. At the same time, that may also indicate that the Fed must stop QE2 sooner rather than later, which would spook the market. A perfect number might be in the 150K to 200K range.

Stay tuned!

Scott Cole
www.bestdaytradingstocks.com

Stock Market Commentary

Yesterday was a true selling day for the market, with all of the averages down at least 1.5%. The reasons for the decline are of no matter. It is simply a warning shot that the market is due for a correction. I found it interesting that the futures pointed to a rebound early this morning, but slowly declined into the open, and now the market is down as I write this about 11 am. If there is follow through today, then yesterday's action suggests a correction is at hand. If another true selling day occurs within the next week, then the easier money will likely be made on the short side. For now, it is a good idea to consider both long and short trades when daytrading to hedge your bets.

Scott Cole
www.bestdaytradingstocks.com