I was thinking in ways to make money by trading stocks and one strategy I am considering to test is the following:
Every week select one stock based on some type of analysis and trade it daily, taking advantage of leverages offered for day trade. I would buy the stock early on the morning, next to the opening bell and I would sell it next to the closing bell. I do not want to invest time in constantly checking the performance of the asset during the day. I want to buy it in the morning and sell it next to close bell, for whatever price it is.
Is there some good bibliography available to study approaches to maximize returns associated with that strategy?
What are potential benefits and cons of that strategy?
notes regarding leverage and costs:
In the country I live brokers give you leverage for day trade. For example, if I have $3000 invested in bonds, I can buy like $10000 worth of stock in day trade without needing to withdrawal my $3000. My $3000 remains invested in bonds giving me return and I would either gain or lose the variation of the price of the $10000 worth of stock I had bought depending on the performance of the day
If buy and sell in a day trade, there is no interest. There is interest only if you hold the position until the other day or days. Each trade would cost 3$ to buy and 3$ to sell. My idea is buy $10000 worth of one stock in the beginning of the opening and sell it next to the closing bell. Suppose the stock varies +0.3%, I would make 30$ - 6$(trade cost)= 24$