Re: Stock Trader looking for an Investor
I do mostly swing trades. Meaning I will trade a stock and hold/short it for 3 days to 3 months on average. I let the market come to me. I dont chase anything. I always follow the institutional money(the big boys). I want to know were and when there getting in and most importantly when they are getting out. I dont trade just any stock. The set up has to be there and I want the market behind that stock(s). Stocks can only go up 1/3 of its potential by itself so you need the markets help to move it. I do this by seeing what the market is going to do first, then I look for stocks that are showing relative strenght or weekness. I want to see W formations below or above moving average. This is were I can catch breakouts(a combinations of shorts covering along with tons of buyers)which makes the stock price shoot hard to the upside. If im shorting I will look for the opposite.
I use 4 charts that show me the mother load(will it continue up or down for then next 3 months. This is the chart that your stock broker doesnt want you to know about) of that stock or market. The short term(will it continue up or down for the next 3 days to several weeks)of that stock or market, the intraday(entering a position, adding to a positions, taking off a position and pivot points), and support and resistance(were the buyers and sellers are, key areas on were I look to enter a trade and were Im going to look to take profits).
There are alot of other things that Im constantly looking at like volume, volatility, slow stochastics, and I always break down the market by looking at what drives it. This helps me to determine if new money is comming in or going out. Also I will know if the market desides to rally up if its a head fake rally or if its real.
I may day trade a few stocks once and a while but mostly by accident. Usually if I get stopped out of a position or if Im adding to a position.
I take very little risk when I trade because I get in at the best possible time and I know how much Im willing to lose before I enter any positon. I never go in with alot of shares either. I always go in with minimum shares and then add to the positions once I get confirmation that the stock is moving my way. I always use stops too and I know when to take profits.
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