Trading doesn’t have to be complicated. In fact, despite the common misconception, stock trading can actually be pretty simple and straightforward. That’s why in this short article, I want to show you one of my favourite strategies to find simple yet powerful intraday stock trade ideas.
The Simplest Strategy: Buy What Other People Are Buying.
One of the simplest facts about stocks, and any other publicly traded markets, is that you can always see what other people are buying. In fact, just by looking at the stocks, currencies or commodities that are trending higher, you can figure out what other investors are accumulating.
The reason this is so important is because unless you have a huge amounts of money or are trading a very illiquid security, you need other buyers to come into the market and bid up what you’re holding if you want to realize capital gains.
And while this is true on every trading time frame, it’s especially impactful for intraday traders. That’s because big moves can come quickly. If you can align yourself with these waves of bullish behaviour, you have a better chance at maximizing your intraday gains.
Ways To Find What Other People Are Buying:
So how exactly do you find what other people are buying? It’s a great question. One good place to start finding what other people are buying is to scan for stocks hitting new highs.
From there, you may want to also look for:
Big volume moves (higher than the usual daily average) that show other market participants are coming in to buy the stock too
Strong strength in the sector as well, to help buoy the group
A fundamental catalyst, like an analyst upgrade or strong quarterly earnings results
By aligning as many of these factors as you can, you improve your odds of finding stocks that other people are buying. And with this simple strategy as your guide, you can help boost your intraday trading returns in just a few easy steps. And by going with the flow rather than fighting the tide, this simple strategy might just be what your intraday trading needs.