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Anonymous
Becoming a Medium-long term trader 2015-12-04 03:19:14 Post No. 983938
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Becoming a Medium-long term trader 2015-12-04 03:19:14 Post No. 983938
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I am making a trading plan for trading stocks for the medium to a longer term (1 week minimum to 6~9 months for the longest trades)
Right now its just a rough draft with a few overall guidelines that I want to quantify and get more detailed with later but it looks something like this:
Overall I want to Trade companies that are "green" (at least appear so to the public and the information found online) and or environmentally sustainable
Use financial and business model analysis to choose which companies are good buys and which aren't.
Use risk models to make an efficient portfolio for the medium term ( sounds like total BS but I'm way too lazy to go into details and I need to brush up on this stuff)
The rules so far:
>1. Buy only, no shorting
>2. Buy in the same quantity for every trade (either like 100 of a stock or $1000 each trade)
>3. Stop loss, limit losses with a stop loss (was thinking between 15% - 20% of the original stock price, but need to do more research to determine a good limit)
4. Profit taking - set goals similar to a stop loss but when a stock reaches a certain reasonable price (again need to research more) take the profit.
5. Time limits for each trade, hold positions no shorter than 1 week or longer than 6-9 months. (could be case by case but I expect most trades to either be exited due to stop loss or profit taking before the end of 6 - 9 months)
6. When to enter a trade (obviously buy low sell high but who the fuck knows this shit).
Any traders or casuals out their that trade medium term and have working strategies?
Suggestions, comments, questions and criticism are all appreciated.
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>>983938
Shameless Self bump and I know I used the wrong form of "there".
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In my opinion you would keep stop profits for shorter term trades you don't want to in an out a stock because you keep seeing it as hot
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Just trade options and bet on volatility. If you expect a big movement in a stock but don't know which direction, then use a Straddle. I've been doing this on demo ThinkOrSwim for the past couple years while at work trading Straddles on oil futures 2-3 months out. Have made 81% return in these 2 years.
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>>983943
I agree, I think maybe using a stop loss that moves up with the price if it keeps going up rather than just exiting the trade, but one of my main goals is to be consistent with all trades.
>>983945
I like this idea, I might consider just mastering an option strategy instead. The straddle is one that I've thought about but I want to learn more about executing it before I start.
Does think thinkorswim have a good demo tool?
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>>983962
Hell no. ThinkOrSwim sucks. But it's the only one I could find where I can trade futures options.
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>>983938
>Any traders or casuals out their that trade medium term and have working strategies?
>Suggestions, comments, questions and criticism are all appreciated.
Average down, don't set stop losses, reap profits more shrewdly than not. It's pretty easy if your goals are reasonable, you can count on 100% annually if you don't over diversify and aim for 10-100 day trades.
But only buying to sell is a major obstacle in stock trading - that could make things difficult considering the next recession is upcoming.
In that case my advice would be time is of the essence, make sure you spend enough time (3 hours on business days I suggest) sorting daily charts on your watch-lists listing them from what you think is the best most pressing deal to the least pressing deal and make sure your trade targets are aimed doubly - one target for the 1-15 day and one for the 15 - 150 day. If you don't set stop losses once you've utilized more than 80% of your capital you can spend less time keeping up with the charts, I suggest 20 minutes each business day.
Sit on your losses and average down.
There's no easier way to beat the street.
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>>984128
Also if you don't have the liberty to be immediately responsive to catalysts on your investments then set an emergency stop loss and make it a trailing one closing your positions with good judgement planned after-hours based on the daily chart.
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>>984128
>don't set stop losses
Nice of you to give your money to others.
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>>984166
>averaging down
averaging down = dead money gone you can't use.
I expect the next truism to be quoted in this thread will be " It's not a loss until you take it."
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>>984257
The only acceptable time to average down is when rebalancing your portfolio. Averaging down has no place in trading. Stop losses should always be implemented as well if you are trading and not investing.
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>>984166
Stick with google.com/finance headlines, fox business news headlines for inspiration and watch cnbc during market hours on occasion to gather the general feel of the market so when the next bear cycle or big correction is in you can be positive you're not delusional.
And don't be afraid of losses, the best traders to develop could have started off with 20% losses annually for a few years followed by 50% gains for consecutive decades which = wealthy retiree's. Invest and risk more as you become more proficient.
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>>984566
>The only acceptable time to average down is when rebalancing your portfolio.
Lmao, you probably think arbitrage isn't ultimately profitable either but that's why it's illegal.
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>>984566
>betting that prices will ultimately rise instead of betting that prices will rise above the current price within a reasonable time frame is UN-acceptable
it's seems as if you hate money
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