Contrary to popular belief, I am not just a daytrader. But let’s not get it twisted. I daytrade. Which is to say, I trade… during the day. Frequently. On Thursday, in $AAPL alone, I took 15 trades.
But as much as I enjoy it, my heart and passion are in swing trading and reading the market. So I monitor my swings while I take advantage of the intraday movement in the great stocks I love to trade anyway. And though I tend to at least try to avoid degenerate dumpster diving; sometimes, that other man’s trash really does turn out to be a treasure. Or at least shiny trash.
I intentionally look to daytrade names that are setup to swing; just in case I really nail an entry. That way I can take a piece home for the bigger technical move. My general rule of thumb is to daytrade with 2-4x the size I would otherwise comfortably swing. If I decide to take a piece home, it is usually with cushion from profitable daytrade weight. This reduces risk in the event of a total breakdown in the name or the overall market.
If a swing is long and strong from its entry, and you’re the flavor that likes to ride awhile, roll with it. I’ve got #DTBC members still hanging on to entries in $NFLX from the mid 60′s, $MCD in the 70′s, $SPY in the 124′s, $BAC from 5, etc. For me, personally, I’m primarily focused on 2-5 day holds. That way I can rotate my capitol in and out of stocks as they are setup to move. When that stock rips +3-5% and I catch it, I don’t want to wait for it to go sideways and digest its gains for a week before it may or may not move one way or the other. So I take profits and I get into something else that’s setup to move +3-5%. And so goes the dance.
Here’s what I’m currently holding in the short term trading accounts, complete with trade plans: $ALGT $CELG $CENX $COP $FSLR $IBM $SPY
Congratulations! You’ve made it this far! Have some Goat cheese. $SHLD $SOHU $SPG