Focusing on swing trading the same 2-3 stocks
- Thread starter Sato
- Start date
Good traders focus on what moves the instruments and when. Volatility is your friend, and enemy. Seek it, but develop a control method than can help you navigate it.
Most traders wait for a set up they like best. Do you really think the same 3 stocks will provide that time and time again? No set up, no trade.
You can buy 3rd party software's like Multi-charts or Ninjatrader, then learn to program them so you can back test your ideas. It is better to have a list each day of what is offering you stocks that met your criteria for swing trades. Become as conservative as you can, otherwise you might get hundreds of stocks.
Very true. No need to get overwhelmed by a large batch of correlated instruments. If I did swing trade, each month I would filter down to about 200 stocks with sufficient volume, and in various sectors. Then sift through those charts to handpick 20 in various sectors. I'd then apply a breakout and retracement system (many available) to them for signal generation and manage trades from there. It's all easier said than done though. I personally find daytrading to be much easier.
The issue I'd see is that your be forcing trades probably. It's better to have a setup and wait for it on multiple instruments.
If you have 3 stocks let's say, then how often are they range bound/mean reverting? Do you have a setup that can capture these whipsaws in a range? If your more of a trend swing trader, your setups might not come as often as you'd like with only 3 stocks/ a sector and sectors can be quite correlated a lot of the time and I find myself picking etf's in this scenario.If see the same setup in multiple stocks of the same sector.
If you have 3 stocks let's say, then how often are they range bound/mean reverting? Do you have a setup that can capture these whipsaws in a range? If your more of a trend swing trader, your setups might not come as often as you'd like with only 3 stocks/ a sector and sectors can be quite correlated a lot of the time and I find myself picking etf's in this scenario.If see the same setup in multiple stocks of the same sector.
I'm on the TMX, and my watch-list hovers between 15 and 20 underliers, mainly on energies, metals and financials. Has to be very, very liquid, otherwise a complete waste of time and money. Trying to limit swing's to 2 weeks max.
There is a way around the wash rule, do not trade for the last month(DEC) and the rule is negated.
