Let's take a look at how to trade at the market close.
The end of the day is around three o'clock 3:30 PM EST and this is
when you're going to end the day and your trading position.
At this point, a lot of people think about whether they should hold their stocks, or take their profits.
I wanted to look at some strategies on what to do at the market close.
So let's break it up into whether you're going long or short.
If you're going long on a stock, what you need to keep in mind is that it's okay for you to close out your stock position.
What happens with penny stocks is that a lot of news and a lot of forum talkhappens overnight.
People get home from work, get onto the forums and start talking about stocks, about hype and all the manipulation and the pump and dumps.
Furthermore, for penny stocks, OTC, BB stocks, pink sheets, it could be that if there's a huge pump and dump going on, the sec could start getting involved.
They could start falling.
The civil lawsuits that you see every couple of days on pump and dumps could even freeze the stock.
So I would recommend that if you're going long, you should definitely be careful and close out your stock position.
This is especially true if you don't have the right strategy or you're not sure what to do with it.
The safest method is to close it out and sell your stocks.
That way you can rest easy and get into the next trading day fresh with the new portfolio.
If you're shorting, I would recommend holding overnight.
When you're shorting, you want the stock to go as low as possible.
You're betting against the success of the stock.
If they're in the middle of a pump and dump and it's on the downward trend, people are probably going to review their portfolio, review their trade when they come home from work and see that the stock has been going down.
When people see this, they'll start selling and the stock will start crashing fully on the dump portion of the pump.
So, if you're shorting, I'd recommend holding your position because it's just going to go further down when the market opens again the next day.
Although the outcomes are specific to each individual stock, my general suggestions are:
Closing on your position when you're going long, especially if don't feel sure about how the hype will affect it the following day.