Need more hands off approach to trading. I can't focus while working, studying, and life. Going to preset entries and exits or atleast entries with a stop. So I can research at night and not have to constantly check.
Take your time, there's no need to rush, no need to be constantly trading. Your priority should be learning techniques, not about making money. My opinion, your method is flawed. Swing trading is about swings, buying the bottoms of pullbacks, selling the tops. Easier said than done, but the gyst is, you are looking for potential hot stocks which became too hot and had a correction. The correction becomes overdone and that's when you look to pounce on trend reversals. That's it in simplistic theory, but the idea is you shouldn't be buying tops. Also the simplistic theory is you buy bottoms, sell tops and capitize on swinging the legs. Some traders then go short on perceived tops. I don't as shorting has complications on the ASX and outside my scope of wanting to. When you buy stocks near tops - near ATH's, there is a little added danger of rug pulls. The risk of rug pulls is higher at something which has run awhile than something which is just beginning a run (the bottoms of pullbacks), so if you are entering late, there is more risk of volatility knocking out your trailing stop.
Tops and bottoms and also a stoploss system is a technical science in itself. Not easy, takes lots of experience to discover. Round numbers offer a clue frequently, but trading is about the 'now'. What is happening now! Not a while ago, not the future, so like a boxer you move according to the present and take action according to the present.
Lets pretend there's a stock you are interested in XYZ. There may be a S/R level you are watching at $5.00 If XYZ goes over $5.00 it would confirm a breakout. You decide you will buy it now at $4.75 BECAUSE ITS CHEAPER, YOU'RE GETTING A BARGAIN. STUPID!
Most stocks are rubbish. Only a few beat the index over time. Especially true on a risk adjusted basis. People are going to buy shit and expect gold. I would focus on the leader in each sector / industry. I would focus on what's trending (theme, macro) Buy the select few at a discount, When the index are down. I'd would checkout for alleged monopolistic practices Growth, momentum and value. EPS estimates revision. Forward guidance.
I disagree. My type of swinging is more short term. I dislike waiting to see if the stock will go higher after buying low. That is why I buy near the highs. I want confirmation fast. If that is profitable or not is dependent on myself. As I have stated before I have always been a chaser. I truly dislike buying near the lows due to the fact of waiting. If it doesn't move now when will it move? I have stated before I categorize stocks into two separate categories. Chasing and buying low. In this case I understand when you say my swinging may be flawed but I also understand your idea of swinging as well. I just choose to chase. If the stock won't continue higher like RKLB I probably should get out. RKLB did perform to my favor for a bit though on the 3rd day it continued making a new all time high. Similarly to JPM and HIMS. I dislike being wrong so I rather be wrong now than wait. I understand the problem of the rug pull that is why I wish to reduce gap downs. In this case by doing smaller size/more trades. breakouts are everywhere and many fail, but the ones that don't go on to perform quite well wouldn't you say? I appreciate the conversation though. I guess my move is capturing a smaller swing of yours, but I do not need to deploy capital and wait. I also understand that sometimes you don't have to wait. Sometimes when you buy the bottom the stock starts performing but this is all just a distribution of trades. Similarly for me if I buy a stock it is a distribution sometimes it goes up, sometimes it stays there, etc. The downside of buying low is the opportunity cost, the downside of chasing is the higher risk. I trade opportunities for risk, whereas you trade risk for opportunity. This is how I see trading, as a trade off and honestly how I see life. Most of what we discuss is signal based, volume, SMA, etc. But truly the thing that matters is the trend. How you capture your profit is dependent on your trading style. Would you agree? The trend shows demand or supply based on if you are shorting or buying. If you know the trend you know the direction. Everything else is just the opportunity cost.
Thank you for your input. I appreciate it. I watched your journal 3 months back. I appreciate you sharing and giving me input. I am still very young in life and in trading. So I appreciate all the guidance everyone has given me and the conversations that lead me to understand myself and trading.
I'm not understanding. How is confirmation of a move upward faster at the tops than at the bottoms? I'm not disagreeing, just not understanding.
Hmm I understand your concern. There is a lot of difference in definitions, but this is not the case here. You are asking why confirmation is shown faster at tops or bottoms. It may be that I was thinking confirmation of a breakout. But this is incorrect thinking. I have not done enough research to prove this. I assume the distribution of outcomes for playing the top vs bottom is different. In a sense I am assuming that by playing the tops I will get a strong move up if it was to truly breakout therefore confirming the direction of the supply/demand. After writing this I may be incorrect. When I think of bottoms I assume a lot of inaction from buyers therefore I assume there is a lot of waiting, but you state waiting for the signal which is correct. So really it depends on the signals now that I think of it. Since really the signal is the incoming supply/demand. I guess for me, I just dislike buying at the low since I assume selling may resume. For you it is contra. You dislike buying at the tops because you assume it is where people sell. Two sides to a coin, both flipped at different places, but we are betting on the same thing .