Tuesday, September 04, 2007

Eight items that impact the day's trading.

1. Overseas Market/Economic Action

Any major Positive/Negative news from foreign market impacts day's trading,
it is be best to wait till the dust settles,before going long on the position.

This will save you some money right from the start.

2. Economic Data
If a highly anticipated economic release is set to come out,may lead to market volatility.

It is best to wait for its release instead of jumping the gun and get SHOT!!!!!.

3. Futures Data
Investors should check to see if futures contracts are trading higher/lower.This will give them a better idea abt the prices ahead.

4. Buying at the Open
Buying or selling stock at the open of the market is not a good idea.

Because the opening hour of trading is the first time that most market participants have to enter or exit the stock, which can easily produce higher-than-average trading volume.

These market participants are reacting to the myriad of news stories that came out between yesterday's close and today's open, which includes major market news events like economic reports and political changes.

5. Midday Trading Lull
There is typically a drop off in trading (meaning the volume of transaction) at noon as most of the major news events are out in the market. During this lull, stock prices can often lose some ground.

When this happens, stocks can be purchased at a musch cheaper price at 1.30-2.30pm than they could at, say, 11am.

Again, this is important to know, as this can affect both entry and exit points.

6. Analyst Upgrades/Downgrades
An analyst may give an intraday note that can have a significant impact on a given stock/sector.As a tip,remember to read financial articles or watch business reports on TV.

7. Company-Related News
if a Analyst gives a bullish/bearish article about a company throughout the trading day, this can have a HUGE impact on its stock.

8. Friday Trading
It means that stocks can/often sell off Friday afternoon during the last few hours of the trading day.

because normally, traders are looking to go home "flat" (without positions on their books).

Keep this in mind on Fridays if you are trying to find a favorable time to enter or exit a stock position.

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