Which Trading Techniques works Best
There are hundreds are trading techniques out there and I believe the one that works best is the one you’re more comfortable with. Trying to use too many techniques at once can sometimes complicate the situation mostly with daytrading. Daytrading requires very fast decesion making and trying to formulate complicated models will just not work.
I use different techniques depending on my trading objective. If it’s a daytrade and the stock is moving fast, I do not try to research the company I will merely jump in and get out. If i’m swing trading and plan to hold for a few days I will quickly scan the headlines on the companies to make sure there’s no major bad news on the company. I don’t play into earnings anymore. This is too much of a gamble.
Without getting too complicated I like to use breakout patterns and overall market direction to enter positions.
I believe the best indicators for daytrading is momentum, support and resistance levels. I also like to play the news. Focus on active stocks, if you miss the run wait for them to dip. I watch the raw data and see where the money is flowing. What type of strategy are you using?