"Market Movers and Top 10 Stocks Question"?


Question:
I have a scott trade account that i currently buy and sell stocks through. There is a feature in the "streaming" quotes section that allows you to see "Market Movers" and "top 10 stocks" (based on daily net increase, and daily % increase) These seem to be the stocks that from the begining of the day till the end pretty much have the highest increase in stock values. I have not actually invested in them yet, but have watched many opportunities to have made a good profit, come and go. I'm looking to possibly buy in to some of them, is this an incredibly dumb idea, or is there some way of making method to the madness and picking the ones that will do best of the best?

Answer:
It's generally not a good idea to invest in the market movers and the top ten stocks. Remember, with stocks you want to buy low and sell high. If a stock has made the top 10 list, it has run up in value. It may not yet be at its high, but it's probably closer to that than it is to its low.

If you want to get into a stock that is going to rise look around and see what is the latest "hot" thing that everybody seems to want. Try to identify it early and then buy into the company. I remember back in the 1980's, Pepsi came out with a new drink that everybody was buying. On a whim I bought stock in Pepsi. Within a year I had doubled my money. After another three years I had doubled it again.

Also, look for lows in the overall market. If you had invested in almost any of the large cap stocks earlier in the spring when the market was hitting lows, you would have made a great return by now.
The huge buys and sells that move the price are usually institutional money or big fund traders. One thing you can usually count on, Friday profit taking. Top stocks are usually a measure of volume, could be going either up or down at end of day.
You are aware you need at least $25,000.00 USD to DAYTRADE, right?
I don't know of many traders that use that as a strategy. The best way to get stock trades is to use a stock picking software like one of the first two listed on this page:
http://www.best-stock-trading-systems.co...
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