Swing Trading: Building Your Trading Portfolio Strategy by Strategy

  • July 14, 2011
  • David Penn

Have you read our excerpt from Larry Connors’ recent presentation: How to Engineer Your Trading Portfolio for Profits?

There’s a better way to build your portfolio. And this is by building a portfolio of strategies. This means taking multiple strategies and then letting those strategies work in different market environments.

Read the rest of the article here.

These words come to mind as the stock market pulls back to a new short-term low. One way that professional traders succeed is by having strategies to take advantage not just of the average pullback, but strategies designed to take advantage of even deeper pullbacks and corrections, as well.

This is the difference between having a portfolio of strategies designed to take advantage of different types of markets – even different types of sell-offs – and having a portfolio of “good” stocks and a single, make-or-break strategy to trade and invest them.

If you’re looking for a way to build a trading portfolio of diverse trading strategies with alpha (return above the market’s return), then click the link below to learn more about how 21st century technology can help you create quantified trading portfolios with high reward/risk ratios and low historic drawdowns.

How to Engineer Your Trading Portfolio for Profits – presented by Larry Connors, founder and CEO of TradingMarkets.com

Here are 7 Stocks You Need to Know for Friday

Shares of ^GOOG^ bounced in afterhours trading as the company’s earnings report was better than anticipated. The stock had sold off by well over 1% ahead of the earnings announcement after the bell on Thursday.

^JPM^ reported quarterly earnings on Thursday that were better than analyst expectations. The stock gained more than 1% below the 200-day moving average, but is not yet technically overbought below that level.

Both Google and JP Morgan were among the stocks highlighted in yesterday’s 7 Stocks You Need to Know.

Also reporting earnings on Thursday, ^YUM^ finished up more than 1% and back in overbought terrritory above the 200-day.

^C^ closed lower by more than 1% and at fresh 10-day lows ahead of its scheduled earnings announcment on Friday. The stock is down nearly 9% since its last overbought close below the 200-day on the first day of July. 

Shares of ^NFLX^ pulled back by more than 4% ahead of trading on Friday. The retreat in NFLX takes the stock to the lower end of a short-term, week-long trading range. 
What’s up on a down day? A handful of energy companies were able to close higher for a second day in Thursday’s session. Included among these stocks is ^WMB^, which closed above its 5-day moving average for the first time in a week. 
Pulling back to a new 10-day low above the 200-day moving average are shares of ^MAT^. Mattel Inc. is among the companies scheduled to announce quarterly earnings on Friday.
Click here to get 7 Stocks You Need to Know delivered for free every evening after the market closes.
 

David Penn is Editor in Chief of TradingMarkets.com