Do you diversify as a swing trader given commission fees etc?

Discussion in 'Trading' started by Bugsy, Oct 23, 2017.

  1. Bugsy

    Bugsy

    Maybe I'm just being cheap, but do other short term/ swing traders diversify among a few given stocks (2-3) when they swing trade or is it in and out of a select stock they have done their DD on and feel is a winner? Curious if that is the better route in case of a bad call to help hedge? Thanks in advance.
     
  2. If you picked a stock to play, why would you "throw in a couple more stocks just for the heck of it"? Similar stock? Same sector? If you want to take the "shotgun" approach, trade the ETF.
     
  3. shatteredx

    shatteredx

    "When long, be long the strongest. When short, be short the weakest." -Peter Brandt
     
    comagnum likes this.
  4. Bugsy

    Bugsy

    I keep up with multiple ETF's from different sectors as it would be be pointless to trade similar stocks withing same. I'm taking from your answer that diversifying for short term trades wouldn't be something you'd advocate?
     
  5. speedo

    speedo

    Diversification to mitigate risk would be the mindset of an investor. Having several positions on because of good setups is the mindset of a trader.
     
    Bugsy and TreeFrogTrader like this.
  6. Bugsy

    Bugsy

    Sweet. Thank you.