I was just curious what everyones favorite style of trading is. I prefer trading momentum. I am not an extremely patient trader I mainly take day trades or short term swing trades Aproximately 1 week or less. I love volatility, I love action in the market. I know that volatility can kill an account quickly if a trader isn't careful so I stick with options that way I know what my potential losses are before I take the trade. I also seldom let those options go all the way to their expiration dates.
For about 25 years, I have been doing a variation of a "swing-trade-and-hold" approach to both accumulate shares as well as preserve investing capital. After conducting DD, the idea is to buy a chunk of shares for a company you'd like to own forever (or, at least, a very very very long time). Once you get a little pop, you sell a number of shares equivalent to your initial investment amount, and now you own the remaining shares "free and clear." Here's an example: Step 1. Purchase $10,000 of LOW at $100 per share, resulting in a purchase of 100 shares. Step 2. When LOW hits $125, sell $10,000 of LOW resulting in selling 80 shares of LOW. Step 3. Do nothing more with these 20 LOW shares for the life of your portfolio. You now own 20 shares of LOW "free-and-clear" because the initial $10,000 investment was recouped when 80 shares were sold for $125. This helps to both preserve investment capital for continued investing as well as build a truly "sleep well at night" portfolio of stocks, with the added bonus of generating income from any of the "free-and-clear-shares" that offer dividends. Do this diligently for a number of years, and you can end up with a LOT of free and clear shares generating some decent dividend income whilst also growing your overall portfolio value.
Being an advance trader, I often use Position trading to determine the easier trend of the current market direction.
I pull up to my trading station, look for IPOs available to the general public on the next day and write down the symbols for about six of them on post it notes. Then I stick the post it notes to a dart board on the wall adjacent to my trading station. Next I sit in a chair facing the dart board and wrap an old tee shirt around my head and eyes which is essentially a blind fold. Then I start tossing darts at the board. The sound of the dart hitting either the wall or the board tells me whether I have my pick. When I hear metal on cork I know I hit the board and likely a pick. I take off the blindfold and if a dart has hit one of the post it notes that is my pick. Then I swing over to my trading station and place an order online for the next day opening. Works every time. Haven't picked a loser since I started this method. *** The narrative above is complete fiction, but is indeed the method for the main character in "Hard Luck Henry", a screenplay I'm writing.
If you guys are experienced traders, you should know that there are no "good" and "bad" strategies. Trading is a very difficult thing, the market is unpredictable, and it is impossible to always use the same strategy, it simply won't work. After many years of working in Investous CFDs Trading, I understood that there are no working strategies and schemes on the internet. Nobody will share his secrets, that's how it works. If you really want to become a successful trader, you have to work and read a lot. Nobody will teach you that, it comes with experience, my friend.
Same here! Started trading just a couple months ago but I enjoy know I have a higher potential for gain in the short-term but also a definitive bottom. What are some educational resources you have used to supplement that strategy?
