I'm considering day trading this stock until the dividend instead of holding it. I mean, the way it goes up and down around 35 to 38, it would be easy I think. Plus with TNP buying a little each day, it keeps away the rif-raf.
So help me out longs... why should I hold rather than trade?
Most likely because you don't have the skill to effectively day trade. The fact alone that you asked sums up that you lack the experience to pull it off.
You have to be very sharp and decisive when it comes to day trading. I would say for every 100 people who attempt to day trade, maybe 5 (possibly as low as 1) have a winning track record over time. While for every 100 people who invest for the long-term, probably closer to 90+ are successful over time. I doubt you could even explain the complexities surrounding the crude shipping market right now and if you can't, then there is probably no way for you to properly predict day to day share price since a huge swing in rates, either up or down, can cause large moves in all the tanker stocks. If you are referring to trade basically by the minute in this stock, then if you are a true day trader, it wouldn't really matter what stock you were in.
Day traders prefer stocks that are emotionally driven. TNP doesn't exactly fit this bill, as in the end, it is a fairly boring stock to own compared to others. Try FRO, there is more room to make profitable moves, short term, in that stock.
In the end, thinking about what you wrote, it sounds like you just want to buy and hold through the dividend (which by the way, isn't day trading). Tanker stocks, over the past 2 years, have shown a trend of going up the week prior to a dividend being recorded.
P.S- I once studied a trend in TNP that showed if you bought at the open and sold around 9:50am-10:00am, you would show a profit a majority of the time. Be careful about doing this on Wednesdays though when inventories come out.
I dont have the time or experience to really day trade, so I suppose I meant buying and selling in the same day. If I see a lot of low peaks yet a steady stock, I'll keep a limit trying to get a low price, then set a limit above that to sell. All on margin of course.. I made over 20% in the first half of the year doing that, but Im trying to get away from it.
Anyway, I think you're right about two things: usually mid morning is best, and secondly, the stock should edge up before the dividend. Im still holding. This week has been really nasty though..