Ready for a run-on sentence? I trade growth stocks, companies with strong fundamentals AND solid technicals, I trade them during healthy markets, I look for strength, new highs, breakouts, momentum, stocks that have ALREADY doubled, I don’t look at PE, I don’t watch S&P levels, I don’t care about R1 and R2, but I’m a big fan of R2D2 and C-3PO, I don’t use any indicators (RSI, MACD, Fibonacci, etc.), it’s all price and volume, the rest is useless in my opinion, I don’t believe in overbought/oversold, I use the PRICE ACTION of individual market leading stocks as the NUMBER ONE factor to determine how aggressive to be in the market.
Why do I tell you all this? Because when I joined StockTwits, I assumed many people traded this way (and don’t get me wrong, many people do). However, the majority of what I saw was the 100% exact opposite of what I do. Does this make one strategy right and the other wrong? OF COURSE NOT! I think I was simply unaware of all the other strategies out there because I’ve been working on my own style for so long that I really didn’t pay attention to what other people were doing. Again, I am NOT saying my strategy is better, it is simply different.
Now that I have been exposed to many different strategies, I have become EXTREMELY open minded and developed a few rules:
1) There are thousands of different strategies out there, respect them all!
2) It makes NO sense to impose your trading beliefs on another person. Eventually, people will find a style that fits their personality and works for them.
3) Making fun of another person’s strategy is just dumb. It makes you look foolish and immature. Rather than worrying about what other people are doing, focus on perfecting your own style.
Bottom line, no matter what strategy you use, you have to know the answers to the following questions: Are you managing risk? Is there a loss-cutting component to your strategy? Is your strategy a repeatable process that can produce consistent results? Does it fit your personality? If you can honestly answer YES to all these questions, then you are headed in the right direction as a trader. Trust me, it’s something I still work on and try to improve on a daily basis. Good luck trading!
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