Friday, October 07, 2005

My Trading Strategy

I will post stocks that may be profitable on a daily, weekly or monthly time frame.

The stock picks are based on a system which consists of moving averages, candlestick analysis, volume, a simple but modified indicator and the intepretation of these four components.

Everytime I get into the game I will first place a stop to minimize losses and second I will identify a possible target. Beyond that I get out of a trade, when a sell/buy signal (long/short trade) occurs or the stock seems to be overbought or oversold.
The buy and sell orders wil be placed above or below the foregoing day/weekly/monthly highs or lows.

The %-rewards are higher on a monthly than on a weekly or daily time frame but - needless to say - the risk (in terms of distance to the stop) inreases just as well.

I don't look at fundamentals or practice fundamental analysis - here it's all about technical analysis and the "look and feel" of stockcharts!

Daily Trades:

  • holding time: one to five days
  • target for profit: three to five percent
Weekly Trades
  • holding time: one to five weeks
  • target for profit: five to ten percent
  • update every weekend
Monthly Trades
  • holding time: one to five months
  • target for profit: ten to twenty percent and more
  • update at the end of a month

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