sometimes stock makes huge move during the day
only to reverse almost all or significant portion during overnight/next day
how do you decide when to continue holding overnight or sell before market close?
how do you find out if the strong previous day trend will continue overnight/next day?
Posted by shitdealonly
3 Comments
No one knows. But some things you can do:
learn to analyze a companies and stocks.
guess
hedge.
Hedge is the best practice I have used. Especially if you place your options conservatively. Then again do your research, you don’t always win. Welcome to the casino 🎰. Your odds are a lot better following some rules.
While market activity can be shaped into models that have trends, real market activity is treandless, it is just a collection of trades.
I am not saying that historical data is garbage. I love historical data. But trends do not exist in the historical data, they exist in some representations of it.
As others said, risk management is the single most important skill in investing or trading.
Being able to spot the difference between reality and representation is probably the second.