Should you focus on one stock?

[c.chugani]

Quote from jsmith:

That's pretty funny because those are my favorite stocks to trade everyday. Here's my PnL for today.

what are you buying and selling there? option contracts?

so you sold 4 option contracts of GOOG for 0.76 and bought them back for 0.3975?

Thanx for clarifying.

 

[gptrader]

Yes, those stocks move, and with a posted P and L, credible and impressive. My question is though, if you want to share it is, how do you establish the entry...tape reading, enter on a trend and hold thru the pain or ????????

 

[pumpanddumper]

I somedays trade and focus on one stock. I'll sometimes just put one or two on my screener not to get distracted by other crap.

I usually do it with ETF's like DXD.

But this month I made a few trades on WM. I do the Superman 3 approach and scalp 1/4-1/2 move on block trades. I shoot for 3-5% and bail.

 

[megabucks]

Absolutely. I used to trade a screen full but I have paired back to just a couple. Less stress, more control, better results for my style.

 

[riskfreetrading]

Quote from Don Bright:

A number of our traders focus on one or two stocks. It's like having other people coming to YOUR poker game vs. going to someone else's game each day.

Heck, my Nephew makes good living just trading GE.

Don

What if GE gaps down and your nephew is long? Remember BSC?
I like the concept of one to 5 underlyings, but I like ETFs only. They do not gap from $30 to $3 overnight.

 

[riskfreetrading]

Quote from jsmith:

That's pretty funny because those are my favorite stocks to trade everyday. Here's my PnL for today.

Your approach and mine seem similar in the way we trade the underlying! Direction, protection, and "thetation". In other words, we trade stops.

 

[jsmith]

I do not trade options. I trade the securities.
The third column is the number of shares.
The last column is the commission I paid.

Edit: See next post for screenshot with column headers.

Quote from c.chugani:

what are you buying and selling there? option contracts?

so you sold 4 option contracts of GOOG for 0.76 and bought them back for 0.3975?

Thanx for clarifying.

 

[jsmith]

There are many ways to trade them and no right way.
I could not tell you anything new than what is already posted on many threads here on ET.

I was only able to trade for about 2 1/2 hours on Friday.

Quote from gptrader:

Yes, those stocks move, and with a posted P and L, credible and impressive. My question is though, if you want to share it is, how do you establish the entry...tape reading, enter on a trend and hold thru the pain or ????????

 

[jsmith]

I agree. I know I can trade any liquid stock but the stocks that are volatile provide more predictable opportunies to capitalize on. The commissions are also cheaper too since you would trade less shares.

Quote from riskfreetrading:

Your approach and mine seem similar in the way we trade the underlying! Direction, protection, and "thetation". In other words, we trade stops.

 

[KrispyKreme50]

Quote from riskfreetrading:

What if GE gaps down and your nephew is long? Remember BSC?
I like the concept of one to 5 underlyings, but I like ETFs only. They do not gap from $30 to $3 overnight.

I read somewhere that GE is so diversified as a company that it correlates almost perfectly with the performance of the S&P 500. In that sense, GE is an ETF in itself.