Created: 01/27/2007 07:06:32 PM -
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Most day traders have a rule of staying 100% cash at the end of each day in their trading accounts. There are many good reasons for this but what does a day trader do when he wants to make a trade that might take longer? Thats where back accounts come into play.
Back accounts are smaller side accounts day traders keep in addition to their main trading account. These side accounts require much less attention and stocks held in there don't pose much distraction throughout the day.
Type of trades in back accounts are very broad. While some can be day trades, others may take few days, weeks, months or even longer. Some might be fundamental based while others technical.
1) Stocks with long consolidation periods ripe for a move up.
2) Stocks in uptrends close to trendlines holding support.
3) Bottom plays that are starting to hold lows after big drops.
4) Big news plays that have potential for continued rise.
5) Good OTC stocks that have a real business with rising revenues, profits and minimal or no dilution.
6) Dormant shells with sudden activity.
7) Stocks in uptrends that are poised for big breakout parabalic moves.
8) "free money" plays such as reverse splits that round up post RS shares to 100, etc.
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