Do you think focusing on less stocks (say 2 or 3 for instance) equals less opportunity for a trader? The strategy I employ is discretionary so therefore it really can't be automated. From reading other threads it sounds as though everyone here is automated and trading 100K+ shares per day. Maybe us discretionary traders are going the way of the dinosaurs? Is there an edge to focusing on less stocks?
Im also more discretionary, however I look at a list of about 200 stocks that meet my price/volume requirements. I go off of daily/weekly charts however looking for longer term trades and only drop down to smaller time frames to find more suitable entrances on the longer chart. So easy enough for me to just scan the whole list once a day/2nd day and move potentials into a watch list.
I think so, trading a few stocks gives you a good feel for the specialist and how he tends to trade, and you are able to get a sense of the tape for the day. Good information to know, IMO. It is very difficult to read the tape when you have 24 positions on. I know that at times I am executing at less than optimal levels, but the benefit gained is that I don't feel I am at the mercy of anyone specialist or stock. Good trading to you! Mike
====================== Listedguru; 2or 3 sounds fine as long as ; end of day, may pay , to study more. For example GE has been in a sideways trend most of year; & in your example, I would want more than a choice of 1 more stock to pull trigger on swing /position trade. Focus mainly on 5 indexes /ETF mostly ; and several more listed stocks and before i pull trigger its usually focused on 2 or 1. Hope this helps.
I know that I need to be focusing on less stocks but I have a nasty fear of missing out on the 'big play' and therefore can't bring myself to focus on a couple of stocks. Why the heck can't I get over this fear? I'm always worried about whats going on with the other stocks rather than watching my stocks. So then what ends up happening is I miss my set-ups and fills. This is something that has plagued my trading for a longtime now and is really getting to me... Any thoughts? -Guru
Maybe you should rotate a few of the regular stocks while keeping one or two steady favorites. For example, you can stick with a Dow component which is kinda always in play and be on the look out for some new stocks here and there. Most of these stocks don't stay active for long lately so you have to keep switching them, hence when your stocks get dead, you look out for more and switch. You can always hit up an active industry like the financials, steels, oils for some action almost everyday. Be warned, they make moves cause ppl are getting hurt left and right.
it is better to make tons of average trades than to make a few best trades. you'll feel better, and you will have less tendency to wish & pray for those home runs.