The biggest parameter is you should talk about how easy the trade is after its over. Better % that way. No simplistic rule is worth a damn. Saying I love this or I love that , is nonsense. Unless you actually have something so huge that its a moneymaker , in which case I suggest you don't even mention it.
u know what, maybe i made it oversimplistic but this past month has been a marvel for shortin' gaps down especially on biotech, when ALL of 'em kept trendin' lower all day long..same for other numerous stocks like jbl, bsx last week and many others...ttwo was down too much for a tech stock to give u good odds of tumblin' further but if a stock is down between 10-15% in premkt, the bid get taken away [in premkt again and at open] and wont stay above resistance [usually a round number] conditions are favorable to initiate short pos right after the open. on the other hand u can get crashed at open even if the stock will tumble further later due to whipsaw; so, if u dont wanna take the risk of goin' blind into shorts off the bat u can always wait a couple of hours after the bell, to see if the set ups offer good odds for short entry; lower lows/lower highs with thin candles of similar length followin' each others. here risk is much more limited cuz u can sell attempts to rally and use tight stop losses. instincts play a considerable part also but if u control your losses and let your winners ride, this is a viable strategy. besides, i said that on gaps down is where serious moneta CAN be made, not that money is fallin' from the sky, innit. have a good tradin' session
I guess around 20% of my trades are short swing-trades. I look for clear overbought conditions, when the stock has held up for quite a while but it's kind of done - no more aggressive buying - and ready for a retrace. 2-3 days perspective. Yes, I'm discretionary