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Old 10-05-2005, 03:13 AM
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Default Re: Stocks up/down short term

I recommend you use intraday charts and technical analysis to trade short-term moves.

There are many styles and techniques/strategies that work. I am a fan of simpler stuff that focuses on understanding markets and price moves, not understanding how to best calibrate an oscillator.

I recommend John Murphy's TA of Fin. Markets book for beginners. Disregard his hand picked charts that conveniently "work," but understand concepts.

Other ways to make +EV short term trades include predictive methods such as cycles(many physicists take this route), arbitrage methods such as pair trading(looking at the relative prices and seeing when they get out of line), other arbitrage methods such as m&a, playing news releases, trying to play games with the specialist(NYSE) and put on opening only orders, tape reading, or developing an automated trading strategy.

There are so many ways to approach the market because it is so complex. So it's tough to find your way out there. A lot of the books/seminars(think forex made easy or optionetics) out there on "trading" are snake oil and really make it harder to think for yourself and figure out how to make money. These guys sell dreams to the fish who go in to the markets and get ripped up.

In the end, even if a profitable discretionary trader told you all the details of their strategy and how they make money, it's unlikely you would be able to execute it right off the bat. Having an edge is a start, but in the end most of this game is mental.
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