Trading indices on red days

I suck at trading red days (as in days that close red) because, in my opinion the earlier hours of red days look similar to green days to me. Like there’s the usual 10-10:30 am dip on both red and green days, but on green days the support holds and then shit rallies. That’s how I tend to trade green days reasonably successfully but these days can go red too if the support doesn’t hold.

Do I have a too simplistic view of things? How do you trade red days? Do you look at the last few days/weeks trends to see if a support on a given day will hold and the stock will bounce back or if it’ll not hold because something’s been overbought recently?

I think this is really dependent on the stock - even on “Red” days plenty of “Green” stocks. Is there a particular set of stocks you are focused on?

What makes you take entries on the tickers that you are getting into? It’s important to know “what is my plan?”

  1. What is your entry price?
  2. What is your price target and support levels?
  3. How long until you think that price target is hit?
  4. Are you expecting a drop in price?
  5. What happens if it goes down in price?

Are you entering a ticker because someone called it out? Well, what is your plan?


Indices’ ETFs are what I was thinking of. SPY, QQQ etc. I tend to be profitable on red days too trading other stocks, but I meant more like, how do I do a good job of profiting off indices going red?

Sorry I phrased my post ambiguously.

Also, even though there are green stocks on red days, what confuses me is that I don’t yet know how to decide if a day’s gonna be red or green based on the first few hours of movement. Like they seem to move similarly in the first half of the day when I take my positions.

So for your last Q, I’m specifically talking about indices’ ETFs so it’s not one that someone called out but something I tend to watch regularly. So my plan usually is to find what I think is the day’s support (around 10-11 am) and buy calls, and my PT is usually a 5% gain on my calls.

Your 4th bullet is the one I’m having trouble with. I typically find it hard to expect a price drop and have been told that TA works best intraday and not really on the daily chart?

I use a few charts that are a month long. TA on daily, monthly, etc. charts are definitely valid.

My point with that last bullet is you should expect the price to drop and you need to determine what is inside your risk tolerance and what is outside of your risk tolerance.