d99- I'm doing more lately and have a couple of killer shorts ongoing in a few high priced stocks that trade at elevated P/E ratios. Also some longs in inverse etfs. Unlike day trading where I have no expectations of directional movement, in my swing trades I have to have an inkling of what I expect to happen in the future. This is a dangerous way to think (because no one knows what the future holds)so I go into the trade basically writing off the amount to my stop loss as I make the trade. Closer to pure gambling than trading. I feel the underlying economic conditions mean more to me than charts in this respect. The intraday momentum also is a telling indicator to me. The velocity of the moves gives me a pretty good insight on which way it is headed. You could also print out your watchlist, close your eyes, throw darts at it and trade what they hit....
From yesterdays ERX short
2 comments:
Scott,
You rarely do over night holds, what was your thought process for this one?
Thanks
d99- I'm doing more lately and have a couple of killer shorts ongoing in a few high priced stocks that trade at elevated P/E ratios. Also some longs in inverse etfs.
Unlike day trading where I have no expectations of directional movement, in my swing trades I have to have an inkling of what I expect to happen in the future. This is a dangerous way to think (because no one knows what the future holds)so I go into the trade basically writing off the amount to my stop loss as I make the trade. Closer to pure gambling than trading.
I feel the underlying economic conditions mean more to me than charts in this respect.
The intraday momentum also is a telling indicator to me. The velocity of the moves gives me a pretty good insight on which way it is headed.
You could also print out your watchlist, close your eyes, throw darts at it and trade what they hit....
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