Why You Should Follow Only A Handful Of Stocks
Less is More
Yesterday was yet
another example of how selectivity pays dividends. For me, this idea
of selectivity is part of my daily routine. Sure, it is a double edged sword, I
miss lots of trades, good and bad. Overall it is a good trait to have. Few
traders would disagree. Yesterday was a good example of a narrow range with
good opportunities, IF you were patient.
Let’s look at a couple of trades that I did in
Newmont Mining (NEM).
^next^
There was one other trade in the afternoon that
met similar parameters to the second one noted above. So, for the day I did
four HVT trades, 1 loser; 3 winners. The
loser was for for .02 cents, the average winner was .12 -.15. A decent day to
say the least with a few thousand shares on each trade. These are textbook HVT
trades.
Not exciting enough you say? What about the hot
sectors, or that nonsense stock Taser? Well, there is nothing that is more
exciting to me than making money. Sure I derive pleasure from mindless trivial
things just like the next guy, I just do not do it when I am at work. The
markets are challenging enough, do not make it any more so.
It was also a quiet day in FX too. I did one
trade, short Australian Dollar and ending up getting stopped out at
break-even after adjusting the original stop loss. Absent the jigs and jags
which are next to impossible to trade in FX, it was a day where the patient
traders marked time and meticulously ran through “what if?” scenarios.
Last night in FX, just ahead of the London
opening. showed some signs that things might be active, however, that movement
was short lived. The Dollar stabilized, and the EUR
and CHF which I was looking to go long,
offered little from a Swing Trade
perspective.
Today we have the release of the ISM
Non-Manufacturing Survey at 7 AM PST, a reading of 60 is what is on tap. A
significant deviation from that number should offer some quick volatility scalps
in stocks. Absent that, the game plan remains the same, focus like a laser beam
on the opening and make every trade count….remember, less is in fact more.
As always, I welcome your
comments and questions. If you would like to have your email address added to
my FX Mailing List for actual trade recommendations ahead of my FX
Service through TM in mid-February; simply send me your name and
email address to: aspendave@yahoo.com.
Dave