Stock Trading Strategies

Throughout this 2 month stock trading simulation I discovered different ways to invest in stocks. One major strategy that I found worked for me was short selling the Nasdaq or NYSE top gainers of the day. A common trend I found with all stocks is that if the stock has a major increase from opening to about 10:30 will eventually have a similar percentage decrease throughout the day. If you short sold a stock at the all time high of the day around 10:00-10:30 and put in a limit order to cover around the price it opened at by 1:00 you would have made a good profit on that stock. Many stocks tend to fluctuate throughout the day especially if they have a major increase throughout the opening hours. I found that if stocks increase by a large percentage during the pre-market stage then they tend not to drop as much during the day. For example Kraft stock increased about 36% pre-market but did not drop later on in the day.
Another strategy I used throughout this stock market simulation was placing stop orders, limit orders, and day orders. This allowed me the freedom to trade stocks without the worry of losing a lot of money. If a stop reached or dropped to a desirable price for me it would automatically sell so I would not miss the boat. Many times it is a very small window to sell a stock at a high price. This allowed me to get the best capital gain out of stocks.
As it got later into the stock trading weeks I started to put a good amount of money into safe blue chip stocks so I would always have a steady capital gain coming in even if I was losing money on other risky stocks.