In order to make money in the stock market, you always need a strategy. Without a strategy, you will fail. Strategies ensure that you always put your money in the markets at a time when it is favorable to you. If a stock does not meet the condition of your strategy, you do not trade it.
There are 2 types of trading styles that I specialize in:
Momentum Trading
In this kind of trading style, I try to find a stock that is hot and ride it while it last. A stock that is in a bullish uptrend tends to give a trader lots of trading opportunities. I ride the wave higher and exit before the trend ends.
Swing Trading
Swing trading is where we buy a stock and hold it for a few days to one or two weeks. I find a stock that is about to reverse direction or continue the previous move and then I enter the stock. Typically, I look to hold the stock anywhere from a few days to a week and sell it before it reverses again.
50 MA Support Strategy
50 MA Support Strategy
How Often Do I Enter A Trade
I believe less is more.
Day traders may enter many positions in a single day and in one week they can be trading 20-30 stocks. However, the style of trading lifestyle I choose requires me to select 1-3 stocks a week. One stock a week can really build up a portfolio and the maximum should be 3 positions. Anything more than that will usually be disastrous. A careful selection of stocks with the highest possibility of success is key to making money in the markets.
Day traders may enter many positions in a single day and in one week they can be trading 20-30 stocks. However, the style of trading lifestyle I choose requires me to select 1-3 stocks a week. One stock a week can really build up a portfolio and the maximum should be 3 positions. Anything more than that will usually be disastrous. A careful selection of stocks with the highest possibility of success is key to making money in the markets.
