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I am daytrading futures for some time now. Mostly concentrating on a single market. I would like to add stocks, ETFs swinging strategy to diversify my portfolio.
I have a pretty good idea on how to find setups. I got some questions regarding technical aspects and execution - timing, picking up the right stocks. Basically those which any stock trader could easily answer in couple of minutes. Is there a comprehensive guide regarding all these technical aspects. Best would be some kind of webinar, or at least a video. If not then book.
Could please someone reffer me to some source of info?
You are correct, I don't have a target.
To over simplify my strategy I buy stocks that are going up and don't sell until they stop going up.(Lower swing low)
To keep losses small I don't hold any losing positions in my portfolio. (the longer I hold a stock the bigger drawdown I allow)
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
I mean drawdown in the portfolio. If I have a position that has increased 50% I can let that position slide a bit without incurring a loss.
A stock making new highs is one of the triggers for a buy signal. Once I open a position my stop is quite close until the price moves away from the purchase price. If I am fortunate enough to find one with momentum I move my stop to the swing lows, first on the daily chart then on the weekly chart.
I count drawdowns from the high. If I were to buy a stock at 50 have it go to 100 then retrace to 75 I would have a 25% drawdown and not hold a loser in my portfolio.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
Ah, thanks. That makes total sense, thank you for explaining that. So you are trading a trend following style l see. Which is keep your losses small and let your winners run.
At what point do you decide to sell a winner?
Using the example above, you buy a stock at 50, it then goes to 100 and retraces back to 75. At this point you are still up by 50% on the trade. Would you continue to hold the trade in case it resumes it's upward trajectory?
I guess the point I'm trying to establish is when do you cut a winner as getting large winners is part of the trend following strategy?