There's nothing like a a decent bear market to make a trader try much harder. Are you thinking small caps will improve your score over larger caps? From January last year till now, XJO down 4%, S&P500 down 15%, Russell 2000 (small caps) down 21%, small caps only outperform toward the tail end of a bull market. So the best strategy imo, is diversify, medium & large caps buy first, then as they get tired, switch to smaller caps. In a bear mkt, small caps get hammered.
The only problem with that, Darc is trading from work, he may wish to discontinue that as index is really mostly intraday, he may be wanting to swing trade from home. But I agree, small cap is nasty shit and most likely send someone broke real quick.
Thanks for that. The reason I thought Small Caps was the large number of them, the potential for movement both ways, starting with getting as good as possible at Long first. I also prefer the after hours research rather than watching a Chart obviously. All those Gurus: Minervini, O'Neil, Kullamagi etc go Small Caps, obviously Long at the start of a Bull Market, then Shorting at the start of a Bear Market. I'll have to think about your Sage advice about the Mid/Large Caps. Thanks for that
Yes, I've managed to nail down a T/A system from Daily charts down to 5 minute Charts. Seems to work in manual Backtesting, using a rules approach. Am trying to get the Funnymentals learnt and obviously keep improving everything else. Thanks
On the contrary I think our index is great for swing trading and can be traded from just looking at it at the close. Become a master of 1 instrument rather than a jack of all. I think if he is looking at markets at work following multiple stocks would be more difficult than one index trade. Just my thoughts anyway
Thanks. You think just the Daily chart is enough for Indexes? That would be ideal, with an ATR trailing Stop or something?