Dow Futures
The Dow is setting new highs but it is hard for me to buy any Dow futures at this price. I guess that comes from my day trader days when I would always look for a low risk entry point.
If you buy something setting a new high then a lot of times as soon as you buy it will reverse on you and when it does then it can make a big drop before you can get out, especially if you’re trading a thinly traded stock.
The day traders who where in a stock like that bought the stock a long time before it set the new highs then if it made a hard reverse it was just a matter of how much profit would they be able to get out of the trade not how big a loss they were going to take.
I still like the idea of finding a sold base where there are a lot of buyers under you so you can figure out that you are risking a quarter point and can easily get out. Then when there are very few people above you so if the stock starts moving up then you have a very good chance of making a half point profit.
Those are the good trades I still think about.
If you buy something setting a new high then a lot of times as soon as you buy it will reverse on you and when it does then it can make a big drop before you can get out, especially if you’re trading a thinly traded stock.
The day traders who where in a stock like that bought the stock a long time before it set the new highs then if it made a hard reverse it was just a matter of how much profit would they be able to get out of the trade not how big a loss they were going to take.
I still like the idea of finding a sold base where there are a lot of buyers under you so you can figure out that you are risking a quarter point and can easily get out. Then when there are very few people above you so if the stock starts moving up then you have a very good chance of making a half point profit.
Those are the good trades I still think about.
