Latest: Tried all these stock trading strategies? Twenty-five years of investing and trading have taught me some trading strategies that work from time to time. No strategy works each and every time, but if any mentioned here match your trading style, maybe give them a try. Volume is Key For a day trade, watch for much larger than normal volume up or down on a large percentage moving stock, then consider placing a trade counter to that move when the volume slows. No matter what the news was, the next day or two will often reverse at least some of that percentage move. Then close your trading position. Time Tested Methods A smart day trader will always cut their losses if a trade goes against them, and also take profits when a stock looks extended for whatever reason. And buying any stock you wouldn't hold for a long period usually affects your short-term trading decision-making in a bad way. So don't do it. But being smart and being prepared will improve your chances. Good luck with all your trades. Day Trade Momentum Sectors If strong stocks in any given sector are moving, the chances are good that related issues will also, but only if the move is major news related. So try flipping the cheaper stocks by taking a position when their volume finally picks up, then close it the day they pop. Stick with Large Percentage Stock Movers You can day trade any stock that has volume, but why go for small percentage gains when you can make many times that with a well-timed trade? The large percentage gainers to look for are usually small stocks, stocks with small floats in a positive stock market, or ones with fantastic news events. Play the Bid/Ask Spread If you really want to be an active day trader to grind out some profits, play the spread on stocks by trying to catch a bid then immediately flipping it by putting in an ask order slightly higher. Obviously picking a stock with volume here is important. To avoid wash sale complications at tax time, the retail trader can move to different stocks every trade for at least 30 days. Just make sure you know each stock's trading pattern and get out when the trade goes against you. Take Advantage of Manipulation in Hot Sectors When momentum sector plays are working, there is often somebody who will try to buy or sell in the pre-market to "paint the tape" -- just to attract others -- by buying or selling at least a few hundred shares then. So at the end of the trading day if you have a position that qualifies, consider putting in a GTC extended hours order in just enough off the spread to attract a manipulator to take your shares the next day. The key is usually not be greedy about the price you ask. Early Morning Positioning Often much of a stock's volume comes early in the day and it tapers off dramatically, along with the share price. That is a good time for the day trader to take a position if everything else looks fine. In other words, there should be more reasons to be in that stock right now. But that is often a good time to place your orders. Pre-Holiday, Expirations, or Index Change Activity Volume will often slow before a holiday giving the trader an opportunity to play the dips as mentioned above. On the other side of that, just before option expiration or when a stock is to be added to a new index that mutual funds must buy, can present momentum opportunities for the trader who does their homework. End of Year Tax Loss Selling Can also present traders with an opportunity. This time it is to find oversold stocks at good prices. Selling by fund houses of their losing positions is often over by the end of their fiscal year, so check the chart for bargain prices and low volume after October. That is how you find stocks worth watching for a rebound. p.s. Buy gold as a hedge against so-called sovereign debt problems around the world... Disclaimer: Buying and selling stocks is always risky. Traders can and do lose money, so consider carefully before buying or selling any security at any time.