Day Trading Stock Picks

Inverse Head and Shoulders Trading Pattern (IBN, NYSE)

There are a couple of ways to trade this stock pick, depending on how long you want to remain in this stock. In either case, you should take an immediate long position. The shorter-term play would be to hold the position until ICICI hits $40 (yesterday’s close was $37.69), which is the resistance level. If you are interested in something for the longer term, ICICI should continue to climb for a while once it crosses the resistance line, but predicting a good exit point is trickier.

Unfilled Gap Trading with DR Horton Inc. (DHI, NYSE)

A good day trading stock alerts example is DR Horton (DHI), one of the homebuilder stocks that have been punished since the 2008 financial crisis and the resultant housing market downturn. In this case there has been no significant news for DR Horton, so there is no clear indication of what produced this sudden gap. 

On the first trading day of 2012, the MACD made an upward cross of the signal line, and the stock saw an increase that took into a $14 to $15 trading range. The MACD signal turned negative at the end of January, though the stock price moved sideways for a while and finally fell below $14 on February 21. It is now at $15.47.

Head and Shoulders Day Trading pattern

Deckers Outdoor Corp. (DECK) is ideal for stock day trading. It is in the large caps range, but not too expensive for large quantity trades. We are monitoring DECK very closely and soon, will add it to our daily stock picks. Deckers began the formation of a head and shoulders pattern in late July 2011. This pattern is referred to as a “head and shoulders” because it forms when the stock price moves up from a support level and makes a first peak (left shoulder). The stock then corrects to the vicinity of the support line and bounces to a higher peak (head) follow by a third and last peak (right shoulder). When the entire pattern has finished forming, the stock typically breaks below the support and heads lower.

Cup & Handle Stock Trading - (OIH, NYSE)

THE OIH stock is an exchange-traded fund, the Market Vectors Oil Services ETF (OIH). Over the last five months, the stock has formed a cup and handle trading pattern. This example belong to the longer-term style, but can be used with day trading stock picks. The cup and handle pattern is formed when a stock trades in a bearish style that produces a technical price decline. Once the stock begins to recover, it will typically experience a correction as the price returns to the vicinity of its pre-decline peak. The correction is usually played by day traders that trade against the trend and forms the “handle” of the pattern, which is a downward-trending price channel.

Daily Stock Gap Trading (P, NYSE)

One of our stock picks examples is Pandora (P). In trading March 7, it suffered a substantial unfilled gap down. A gap is created when a stock opens substantially above or below its previous close, creating a “gap” on a candlestick price chart. (It is very important to understand that this pattern only shows up on a candlestick chart - a line chart will not reveal it except as a “cliff.”) This is usually the result of significant news - whether good or bad - that was announced after the previous day trading session closed. Stock Gaps can be “filled,” seen when the current and prior days’ trading ranges overlap, or “unfilled,” as in this case, when there is such a large difference that no overlap exists. Unlike the Forex Market, which rarely has Gaps, Stock Gaps are daily routine in stock day trading.

Pfizer Inc. (PFE, NYSE) is another example of stock picks based on the Ascending Triangle trading pattern. Since the beginning of December, the stock has formed an ascending triangle. Of the three triangle patterns, this one is the rarest. It is created when buying pressure is stronger than selling pressure. As the stock’s highs continue to reach roughly the same level, the flat upper trend line emerges; conversely, its lows become higher and higher as well, forming the upward-sloping lower trend line that converges with the upper line to create the triangle pattern. As you might guess, the ascending triangle is normally the sign of an impending upward break.

Head and Shoulders Stock Pick Example (NXTM, Nasdaq)

One of our stock picks example is NxStage Medical Inc. (NXTM). NXTM began forming a head and shoulders pattern in June 2011. This pattern is characterized by price movement up from a support line to an initial peak that creates the left shoulder. A correction back to the support level is followed by movement to a higher peak, which is the head. A second correction to the support line is followed by a last, lower peak, which forms the right shoulder. Once the right shoulder pattern has formed, you can expect the stock to break through the support level and move lower.

Descending Triangle Trading Pattern - BMY (NYSE)

One of our stock signals examples for today is BMY (Bristol Myers Squibb Co. / NYSE). Since late November, BMY has formed a descending triangle pattern. As you might guess from a glance at the chart, the descending triangle is a bearish pattern. It forms when sellers outnumber buyers, so that the highs are weaker and weaker in successive closes but the lows continue to reach approximately the same level. The triangle narrows as the upward momentum fizzles out until finally the stock signal breaks sharply downward.

Cup and Handle Stock Trading Pattern

Here is another example of one of our favorite pattern - The Cup and Handle trading pattern. BRCM (Nasdaq) has formed a classic cup and handle, with a decline from the mid-October peak to mid-December and a gradual recovery since then.

Cup and handle trading analyze - WAG (NYSE)

The cup and handle trading pattern is formed when a stock suffers a bearish period that produces a gradual decline. This strong trading pattern is one of our favorite patterns and it is suitable for all trading styles and all markets.

New analyze example of an ascending triangle pattern with the BSX (Boston Scientific Stock - NYSE). The
 "ascending triangle" pattern is stronger than the "descending triangle" and it is widely used as a stock signals generator for day trading as well as swing and position trading.

Day traders are divided into two camps when comparing Forex vs stocks and both sides have advantages depending on how you like to trade. Understanding the differences between them will allow you to make the most profitable trades in each of these markets and help you to balance your investments.

What Type of Stock Trader Are You?

Trading stocks can help you generate a great second income and can be done in your spare time. Stock day trading, swing trading and position trading are the most common stock trading styles in use today. Understanding what trading style is the most suitable for you and where to find your daily stock picks can make all the difference in how well you do in the market. The key is finding a strategy that works for your budget and investment goals and sticking to it

Stocks day / swing trading can be done as a full or part time job and both of these can provide a great second income. The trading systems have become more advanced and allow you to automatically trade the stocks you choose without the need to monitor the market. Stock alerts have also gotten more accurate in recent years and can help you make your choices for the trading day more profitable.

There are several major differences between the NYSE and the Nasdaq markets. Nasdaq stock trading is traded electronically and it is faster than the NYSE and more suitable for day trading.

Understanding the difference between large cap and small cap stocks will help you create an evenly balanced portfolio. Large caps vs. small caps stock trading takes a little research and finding the right daily stock alerts can help in your decision on which investments to choose.

Most investors use a combination of top stock picks patterns for their investments and most of these are based on recognizing well-established patterns in the price of a stock. Understanding these trading patterns and how to spot them can give you a leg up on other traders and increase your earnings while reducing your risk.

Stock Day Trading Mistakes to Avoid

Learning how to avoid the stock trading mistakes that many traders make will keep more of your profits in your portfolio. While it’s hard to eliminate all the risk from day trading, knowing what mistakes can hurt you is the first step in becoming a successful and profitable trader.

If you are looking for amazing leverage on your daily stock picks investments, CFDs might be the perfect choice for you. CFD stock trading are available for international markets and allow you to control a sizable amount of stock with a smaller investment than conventional stocks. Most CFD brokers have lower fees and fewer rules all helping to make CFDs a very popular choice with many savvy day traders.

If you are interested in day trading, best stock picks money management strategies can help you decide how best to trade. Knowing what stocks to watch is half the battle for most day traders and finding the best daily picks is critical to your success.

Profit from Daily Stock Picks

Finding the right stocks to invest each day can help you increase the profits from your investments substantially. You can generate a sizable profit from daily stock picks that show you when to enter and exit a stock and may even suggest how much of the stock you should own. Use these picks to understand which stocks may be right for you and they can help you invest with less stress and generate a higher profit from your trades.

Stock Day Trading Tips

Find the right stock day trading tips can help you find the perfect stocks for day trading. By using a stock picks service you can not only save time, but will also make smarter choices for the day trading stocks you choose for your investment.