Stocks Long Position
Trading Day: Ten Reasons for the use of file metadata – # 8 of 10
Reason No. 8 for use statistical metadata action is to learn to take advantage of the clues found in the trade of long positions in the market.
Reason No. 8 continues controversial with an award, the use of the actions of metadata and its role in trying to time market trades.
There are a number of people using techniques try to time their transactions in shares. In other words, it is to buy low and sell high. Another still is trying to take advantage of price fluctuations daily stock trading often and make some small profits but quick repeated.
What it does not matter which group you belong succeed in making gains in the stock market, an effective negotiation strategy is a necessity.
For those looking to make many small profits in the market rather than a murder large, this is a strategy that must take account.
Is the use of metadata values. This requires monitoring of the three pieces of information on stock price:
- Current price drop in shares
- Previous low stock price
- The high prices prevailing values
For reasons of August, the references are to report the following metadata:
- 15-Minutes-metadata-Details report as illustrated in Figure 8 below
Click For a detailed description of the performance report
Click here to see this relationship with Ford Motor Company Details
We will use the modified extract of the next screen this report to explain the strategy used for the execution of a trade based on metadata.
This day trading strategy is to follow the state price of the shares lower. A buy signal occurs when the price is low below the lowest price in over 15 minutes earlier.
As shown in the example above, during the period 12:45:00 to 12:59:59 time, the price of the shares of Ford fell below the previous price of 7.52 and continued until 7.47.
If the stock was sold to Then, either during the same period of purchase or within 15 minutes time (13:00:00 to 1:14:59 p.m.), is very possible that these actions could be sold a modest profit.
To make a profit, the best was that the population was purchased at the closing price low of 7.47 earlier, after are sold at a higher price, somewhere near the current higher price 7.59 for a gain of $ 0.12 per share.
This example assumes that trade is a block of 1,000 with a total of $ 20 in brokerage commissions. Therefore, 1,000 shares multiplied by the share of the profits of $ 0.12 (7.59 -7.47), less commission costs of $ 20 would equal a possible benefit of $ 100.
The most optimistic scenario, where metadata use stocks would to present this type of strategy was presented each time. Using all possible operations 8 A previous figure, the best would result in a potential benefit accrued $ 770 for the day.
This would be done by 1000 shares trading day in the eleven occasions where the criteria signal Cart is presented. And to ensure maximum profits, shares must be purchased at the lowest price and then sold at higher price.
Review 8 of reason, we all know that when performed daily, the opportunity to buy shares at the previous sale price lower then the highest price for the period today is not realistic. However, some kind between the two is possible.
In addition, merchants who use this type of strategy normally would with a larger number of actions to achieve a reasonable profit trade day.
Of course, another option is to perform an operation every 15 minutes to buy stock its low in the previous period and sold at its peak during the current period. The maximum potential benefit day could reach $ 1,690 as shown in Figure 8 above.
For events that must mean that begin during the period from 9:30:00 to 9:44:59 time and subsequent periods of time 15 minutes that the actions that can be changed, Ford shares were purchased at lower prices during the current period, and then sold to the highest price for the next period.
Using this strategy trading day of the periods shown in Figure 8b above. We can see that Ford shares were acquired during the time period 10:15:00 to 10:29:59 and then sold during the time period 10:30:00 to 10:44:59. The potential benefit of implementing this transaction of 1,000 shares would have been $ 130.
But let's face it – we all know that the chances of several times this would be impossible. However, can make at least a profitable business during the day.
Now if this is the question that everyone comes
"Is This pattern of strategy 8, which operates at 100% of the time? "
The answer is "definitely not 100% of the time." Some of the factors that must also be taken into account. For example, practitioners should keep in mind about the general direction of the market for the day, good or bad news that could affect the stock price, and so on.
The key point to remember is that all market influences must be considered before making an operation. Metadata is this additional piece of information that allows you to make an informed decision trading days.
We have now completed review of the reasons for using the metadata of eight shares at the time of day trading. Continuing with the ratio 9:
Using statistical metadata more clues on how to anticipate the market for trading short positions
The link the following reason: is included in the author's biography that follows.
About the Author
Click Here to go to Reason #9
Click Here to access all Report Definitions and Layouts
Stan Pokutylowicz is a Senior Information Technology Specialist and is currently the System Architect and site-design specialist for Stock-Market-Keywords.com, a site containing popular search keywords on the stock market.
This site also features a different publicly-traded company each day of the week, Monday through Friday. As part of that offer is a series of 5 metadata reports containing statistical and historical information about the stock’s price over a period of approximately 12 months.
StockTock.com 8/22/08 ~ Stock Market Technical Analysis