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Friday, 26 February 2016

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Momentum Day Trading Strategy for Beginners- Money Classic Research

Stock market is a particular market
where, traders buy and sell stocks. To bring in more profit, traders take help
of different indicators and strategies. In this sector, there is lot of threat.
To overcome this threat and explore more trading, several advisory firms have been established. Advisory firms hire experts
and technical analysts. These technical analysts are expertise in this field.
They have chased several strategies and indicators, with the help of those they
steer their traders. This article will throw some light on one of the strategy
acknowledged as Momentum Day Trading Strategy. 
 With
momentum day trading strategies traders look to trade stocks on strong upward
or downward trends. Momentum day trading strategy needs a stock that is moving.
Stocks that are cutting around sideways are of no use. Therefore, the primary
step for a trader is to find the stocks that are moving. Traders/experts use
stock scanners to find these stocks. Second step in this strategy is to
find out what the catalyst is that will drive this stock to have a 3-4%
intraday move. Not all the stocks are
capable of putting in 3-4% moves. Hence, traders filter the stocks that are
moving by market cap and float. Stocks market cap, float is inversely
proportional to the speed of trading i.e, Stocks with a smaller market cap and
float will trade faster. This is because there is a reduced supply of stocks
and during times of high demand, these stocks can lead.
 
Thus,
briefly, trader can enter after confirming that the stock is already starting
to rush in pre-market or in the first 30min of trading, has a catalyst and has
a small market cap or a low float. For this strategy, mornings are always best
time to trade.


This
is extensively employed strategy by technical analysts and experts in advisory
firms. One of the best promising firms leading in this sector is Money Classic Research pvt.ltd. The accurate tips and equity tips sent by the advisory firms are at times dependent on
the same strategy.

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