Want to know if the market would be up or down this week?
- Found an article – This article talked about stock index futures being lower and one possible reason being the 50 person shooting that happened in Florida. Futures of the stock index are usually a good indication of where the market will open. If you need further details on what a future is you can find it on Investopedia. Even though this article is for the US indexes we can usually expect a similar behavior for the Toronto stock indexes.
- These are some of the major events that are scheduled for the upcoming week.
- On Wednesday we get data about existing home sales and the Canadian manufacturing numbers. Based on recent trends, I would expect this to be positive. Now need to do some additional analysis to see if any stocks will benefit from this result.
- Based on what I have seen so far in the news and upcoming events this week, I am tempted to hold still for Monday and Tuesday of this week.
Want to figure out which stock may have movement this week?
- The most logical approach to investing would be to pick a day that I am expecting the market to move up and then pick a stock. At times you may need to make an exception when you believe a security will go up regardless of market.
- I am tempted to buy Linked In. I have read few reports recommending that linked in is a buy. Based on past experience, I find social media stocks have larger movements. Which increases the magnitude of profit a person can make in a short time period. It also applies to losses as well.
- Also I personally find linked in useful and it does not have a direct competitor.
- It is the only social media platform allowed to operate in China.
- There is one rule that is sort of making me hold back from investing in Linked in. A rule I read somewhere for day trading was that for the probability of a $3 profit the probability of loss should be $1. My selling point for LNKD is $5 profit, which means I can only lose $1.67 on a stock before I have to sell. Given the possibility of index opening lower tomorrow I may hit my $1.67 and trigger a sell.
- I am going to go ahead and place a trade for LNKD for tomorrow. I believe it may be a good one for day trading as well as one year trading period.
This is my first short term trade in some time, and I have tried to follow the rules I set out to myself in the post called :Short Term Trading