Of course I have capital restraints. I'm a retail trader. I'd think I'm fairly well capitalized. I limit my position size by risking 1% or less on anyone position but I have no limit on the position size as a percentage of the total portfolio. At one time before 2020 one position was over 50% of my portfolio. Rarely hold more than 10 positions. Once a position becomes risk free (stop is above break even) I'll let it run as far as it wants. I don't know what you mean by indexing momentum.
your stop loss is 1% below your entry? what do you mean by risking 1% or less? Indexing momentum is pretty much buying (selling) all stocks that are going up (down).
No my risk is the difference between the entry and the stop. If the entry is $10 and the stop is calculated to be 9 then I have a risk of one dollar. If my account size is 100K then 1% risk is 1K. my position size would be 1000 shares. I'm not indexing momentum as I rarely have more than 10 positions.
You keep teaching and I'll keep trading {with Tom DeMark's tools} - deal? "There may have been a time ..." yes and that time was 9:19 ET this morning right before eMini HOD was in. Stop is one tick above HOD @ 4368.25 (Magenta line) representing 2 times the range of highest bar of the setup added to its high, just in case you were wondering. "Was this close".
Mainly I scan for stocks in a price & volume range making new highs. I further refine the search looking for breakouts to new highs on above average volume. A quick look at the chart will tell me where the price has been in the past and what interest there is now.
Extremely logical thinking. Thinking out of the box, which means throwing away all existing indicators, retracements, support and resistance, stochastics, RSI, candle sticks, Fibonacci, break outs... Strong analytical skills. Needed to "read" the mathematical models. Above average ability to find (hidden or not hidden) links. Years of studying different approaches and improving the models (without optimization), so that they work in all different markets. I am happy that I never read anything as that would have polluted my way of thinking. My brain did not have any knowledge except for the knowledge that I found myself by studying and experimenting with data.