Yesterday I showed how to use RSI, MACD and William %R to find out when its good time to buy a stock.
Today I'll show you how to use it during day trading.
If you closely look at the graph, you will find the right time to buy PCBC when RSI was near 30. Looking at the MACD, you can say whether its bullish or bearish signal. When the blue line crosses the red line then its bullish signal. When the red line crosses blue line, it mean its bearish signal and its time to sell. From the graph the first point to buy was at $1.55. With 5% sell limit, the sell point was $ 1.61. An investment of $3000 would have given you a return of $150 minus $ 9.00 (Zecco trading commission) which is $141. Having a margin account gives you advantage of reusing the money again to buy the same stock.The sell limit depends on the investment you make and the profit you want to take. Usually a gain of 2-20% is easily possible in any stock.
Similar way the second buy point was $1.35 and with 5% sell limit (set your sell limit as soon as you buy) was $1.42. This time the stock rose to 12% but who cares. Our target is 5% a day. So an investment of $3000 would have again given you a return of $141. So a total of $282 can be made in a single day.
If you plan it well you can easily make $3000 - $ 5000 in a month.
If your decision is 70% right and 30% wrong, at the end of month, you will have net 40% profit.
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