Hi, im a fairly new trader, about 5months in. Ive got a fairly good grasp on how the economy rolls, how this effects that ect. But I cannot get a decent system of when to enter a stock...as in....when all the lights are green to buy a stock and im expecting a billion others to be wanting the same stock, how do i get it before the big gap up in the morning?
Do I just take a bit of a punt and start buying stocks that have been oversold and look like turning and hope that the dow is ready to turn green that night for the next day? Or do I buy after the close for the next day and put my buy order in about 5% above the closing price and hope that my order gets filled?
Basically my strategy is to sit on the side lines until the dow has finished its downward leg. Then when the dow turns green, or for goldies, when the POG turns up overnight, I want to get into these stocks the best way i can. So do I put an order in for the pre-open? Or do I buy straight away on the open?
How can I do this without trying to predict when the price of gold will be up, or when the dow will be up the next day? Or is this the only real way of profiting?
I really need help with this fellas.....the longer the explaination the better....!
PS - I should note that my strategy is to enter a stock and stay in it for however many days it takes to hit its resistance level or pull out if it doesnt look like it has the legs. Stop losses are around 10% for me at the moment but im still playing around with them too.