the trend is your friend, long or short?

Discussion in 'Trading' started by markd01, Jul 15, 2010.

  1. markd01

    markd01

    What has worked for you as far as determining what direction to trade in -- long or short, based on the market and stock past trends?

    For example, do you only go short with 100% of your trades if the market is below 200 DMA? Or do you look at shorter moving averages on both the market and the stock you are about to trade, and balance out with some short and some long positions? How has your approach worked in choppy markets that are possibly establishing new trends? I'm experimenting with different variables, such as if the stock 90 day moving average is trending up and the market 90 day moving average is basically flat, then I'd go long on my position, but don't go long with more than 70% of my positions... Btw, I'm a swing trader in equities only strategy, with up to 10 concurrent positions, and average hold time of 14 days.