New Breed Site; Ongoing Discussion Of High-Level Trading
Q: What short-term strategy, in your opinion, would have the least risk associated with it? Personally, I know quite a few strategies that are successful, because I've been trading stocks for more than 50 (fifty) years. I am mostly guided by a 200 SMA to make my trading decisions.
A:
One of the highest forms of stock trading involves two strategies: 1.
Buying breakouts from relatively short, low volatility bases out of stair-step
patterns, and 2. Using active 3-beta tech stocks (the best of growth stocks)
as trading vehicles bought on specific entry patterns, but only after general
market declines, where patience, then
This is the highest form of trading, leading to compounding on a monthly
basis, yearly gains of which the public is unaware, and never being involved in
a severe decline. It is short-term trading with days to weeks' hold periods,
but not daytrading.
There is an ongoing definition and discussion of this, at a non-commercial
website, by a group of long-experienced fund traders. It's purpose, with good
intentions, is to combat the enormous amount of trash material for sale that
has grown up around the investing and trading industries, but it is not just
advice for beginners; it is an explanation of the very highest form of trading
there is. You may have to read several installments at the site (there are
many now, with a new one every two weeks) to get the idea. It's straight
market talk. There is no other equivalent site on the Net. You're invited.
Indeed, the 15-day SMA is rather sensitive and the strategy should only
be applied to issues that already are about to terminate a momentum
move. Watching sparrows in the park I have noticed, that even though
they appear similar, each one is an individual and has distinctly
different modes of behavior; The same applies to stocks! While some
stocks work well with a 15-day SMA, others adapt more readily to 20, 25,
45, 50, etc. SMAs or EMAs.
I've been following this message board for a short while now and I've
particularly enjoyed this thread regarding your trading strategies (as
a matter of fact, I just activated a Google account so that I could
throw in my two cents...). I'm new to trading, and am still in the
process of developing my own strategy for (hopefully) profiting from
the market. I'm always interested to hear how others select stocks to
trade, identify entries, time exits, etc. Your suggestions have not
fallen on deaf ears.