After reading a few very good investing books I´m at constructing my own trading strategy
I kinda decided that I´m going to focus (roughly said) on medium-term trading, with stocks priced from $2 to $12.
I´m thinking to use one of this approaches:
1) To make 4x per year something between 25% and 30% on a single stock. This means, I would have atleast 13 weeks time to hold the stock and wait for it to happen.
2) To make a 10% gain on a single stock pick every month and then sell it.
I would apprechiate your thoughts on this... which one is more likely to happen etc.
From the start of the year, doing my screens and researches, I noticed I would have more success with the first strategy.
-------------------- "Wanting is more pleasing than having" - Spock
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You cannot predict what % any stock will make in a given time.. if we could we all be as rich as Warren Buffett... you need to make entry and exit points on stocks with stop/loss orders on all trading positions... I suggest you swingtrade... buy on the dips (with indications it's about to go into a uptrend) and sell on the rallies (when indications suggest the stock is about to do a nosedive such as when a stock has been way overbought) .... plan your trade, and trade your plan...
-------------------- Let the world change you... And you can change the world.
I know I can not predict exactly how the price will move, but I would use as a guidance something like insider buying, upcoming conference calls, headlines or analyst activity, increasing trading volume, identifying momentum etc.
I´m just asking on which should I concentrate more: making 10% in 1 month or 30% in 13 weeks. (on one stock pick)
Both of these methods need different approaches but I´m still deciding which one to implement.
-------------------- "Wanting is more pleasing than having" - Spock
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