Find an ATM and Use It!!

BellaGuest Blog1 Comment

Do you have a stock that due to both technical and fundamental reasons  has traded in pretty much one direction for weeks or months? I do…for the last few months it’s RIMM.

I have RIMM on my screen everyday and I know exactly how it feels, moves and reacts. I play it virtually every day and use it like my own personal ATM . I am a day trader and I take very seriously the tools and trades I have in my arsenal.

Maybe you can benefit by having an ATM stock on your screen daily. I expect to trade RIMM for a profit every time I trade it. I can spot the robots and use them to my advantage. I can tell real buying from short covering. I can spot the real seller in the tape early. Most of all I can tell when the chop fest is on and avoid trading in the name.

There is something to be said for familiarity. One of the reasons I love 2nd Day plays is because I feel as if the stock is my friend on Day2. I know the levels and how it moves and I can be bigger in size with that comfort. Today I coined RIMM around a core and URBN as a Second Day play on the short side in an up market early. Some tools in your arsenal you will love better than others, use them often.

Jeff Davis

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