Great point Maverick. When I first started swing trading, I was focused on stocks, but then I moved to ETFs. True, the volatility is more tamed than with stocks, but you can match the potential profit target per trade by position sizing. I increased by position size per trade based on the volatility on the ETF. Also, I got better results applying technical analysis to ETFs than to stocks because they are less subject to news headlines and fundamentals shocks. Plus it allowed me to be exposed to different asset classes, that way if one asset class is trending better I focused my attention in that area. I picked around 20, and that's all I look at all day. Good luck to you bud. Great tread. keep it coming.
I do like the idea of ETF trading from a stability standpoint. I need to do some testing of my method against various ETFs to see how it performs.
My strategy did not perform very well this week, but at least it is outperforming the S&P Thus far I have used 128 patterns which focused on oversold conditions. Going forward, I have now added another 33 patterns and broken it out into two methods. An <a href="http://www.mystockanalysis.com/stocks-to-buy/strategy-oversold-pattern/">Oversold Strategy</a> which I have used so far in this journal, and a new <a href="http://www.mystockanalysis.com/stocks-to-buy/trend-strategy/">Trend Following Strategy</a> using the 33 new patterns. I will now be posting trades using both of these methods. The oversold strategy typically has a higher % return, but the trend following strategy has a higher win%.
Tomorrow will be a very BUSY day. I have 9 stocks in total that I am watching for potential entries: RTN,SLE,EQR,DHR,DIS,GWW,HRS,VLO, and JNS I likely take 2 or 3 of these signals tomorrow depending on how the market behaves.