A great day for trading stocks and indices – & the importance of floating supply
Choosing the best stocks for day trading can be tricky and if you choose the wrong ones, it can be tough make money as a day trader.
In this session, we cover some of the basics of stock selection for day trading and also highlight one of the key issues which is understanding floating supply.
Floating supply is one of the most important factors to consider for the simple reason if the floating supply is small, then volatility is likely to be high as the price can be manipulated by the market makers very easily, or indeed a single large order. The opposite is where floating supply is large and in this case volatility will be reduced as these stocks are harder to corner for the market makers and insiders.
This was also a great trading day with the opportunity to make money in all markets, with the ES index falling strongly along with the sister indices of the YM and NQ emini,...