try to catch fewer fishes

Discussion in 'Trading' started by mikeenday, Jun 17, 2011.

  1. mikeenday

    mikeenday Guest

    a common problem I face is that when market trends violently, there are many stocks look and smell the same, and the prices move in the same direction. And they belong to the same group of the best-dressed winners. Naturally I bought or shorted many of them, too many.

    and it leads to over-trading, i.e., cut the slow positions and switched to fast moving ones, it's exciting but the end result is far from satisfying.

    it reminds me long time back when I was in Hawaii diving, saw many fishes and trying to catch them all, ended up none.

    This is just my observation, and I don't find a good solution for it. What I do now is put big position for sector ETFs (FAS/FAZ/QQQ) or SSO/SDS, trying to sit as firmly as possible on them. And to satisfy my desire to over-trade, I put as many positions with minimum exposure (2 calls/puts) on them and jump around like a rabbit.
     
  2. How long do you intend to hold it?