focus on a few stocks or many stocks

Discussion in 'Trading' started by BuddhaTop, Nov 21, 2003.

  1. mrmoose

    mrmoose

    I have been a reasonably successful prop trader since 1998. 90% of my trades and 105% of my profits are from doing one kind of trading, in my case trading the opening. At the prop firms I have worked for I have met many successful traders who likewise seem to have a fairly narrow focus. Some trade one particular stock(this is true of almost all nasdaq scalpers and most nyse scalpers), for others it is a sector. Others only trade earnings or MOC. . Probably the quickest path to consistent profitability is to specialize. Yu have to find a stock or style that suits your personality I have fairly serious ADD so trading in one burst in the morning works for me sitting and scalping all day for pennies would not.
    The downside of specialization is the risk that your particular area of trading can stop working either short term or long term. Alot of traders who are pure nasdaq scalpers could not adjust to decimalization and the dramatic drop of in volatility that occurred in in the crash.

    PS if anyone is reading this who knows how to write can critique my writing style please pm me.
     
    #11     Jan 27, 2004