Stock Market Flip Flops Energy Stocks in Play 4.3.20
Be smart. Don't fight the tape.
It's not you, it's me... Said the stock market to smart traders who lost their confidence.
This tape is tough, we need to use our results as feedback.
Today's episode of Stocks for Breakfast is your blueprint for avoiding big losses and how to become a consistent winner.
Video - Today's Best Stock Picks
Some great questions from the community today that we can use as important trading lessons:
Hello Pete. My A+ well bid candle is - higher high and higher low AND close above the previous high, but you always say only about higher high and higher low.
Close price doesn't matter for you? (on a NYSE (intraday trader)
ANSWER:
Thank you for the question! Yes the close absolutely matters.
To build an argument for a great trade, a long for example, well-bid is the first criteria, change from the open (and the close) should be green also. Especially if you are looking to hold the trade for a few days.
One scan I run every day is % change from the open. (not from the previous close) this tells me if a stock has a large green or red candlestick. Then I look for well bid or offered to find trades.
MORE BELOW
Question:
Great video today and great questions Pete. Ideally I hope to be able to hold a position for 3-5 days or longer.
However, I got pushed out often and ended up having positions hold in hours or less. What would be your suggestions in this situation? Thank you in advance.
ANSWER:
This is a great question because it's about the quality of the idea not how you are managing the trade. Also a little bit of mindset.
Simply put better trades continue for 3-5 days without too much stress.
Those that you are forced to take quick profits simply didn't have the order flow. Don't doubt your ability. Pete
TRADING GAME PLAN 4.3.20
With the market bouncing back and forth again I'm looking to trade the strongest stocks from yesterday.
Not much bullish order flow but many had big volume and strong gains. If they can't make new higher highs I'll let them go.
Of course I'm taking about the energy stocks. Grab the scan here.
Lower conviction level, and short term trade because it's only one day of buying. Not my typical trade.
If the market stays negative plenty of stocks to short sell for longer trades.
Pete
