Among active traders, there’s a bit of a split decision when it comes to trading the same stocks over and over. Some are for it, trading only a few tickers out of familiarity, while others don’t necessarily see it that way.
Personally, I’m trading a very broad variety of stocks at any given time. After closing out a position, it may be weeks or months before I’ll trade the same stock again, or it may only be hours or days.
It all depends on how it’s acting.
There’s nothing at all wrong with going back to the well for a repeat trade, provided two things are kept in mind:
– You have an entry designated, along with an exit plan (for both your stop and target levels).
– Your plan is based on price action (not simply because it’s been good to you in the past).
So long as you’re observing those two things, have at it.
Just be very careful returning to a stock you’ve recently traded because it’s easy to revenge trade if you recently took a loss in it, while it’s easy to be overly-hopeful if you’ve just booked a nice winner in that same stock.
With any trade, it’s crucial that you’re staying objective and have a plan in place.
Trade Like a Bandit!
Take a trial to my Stock Pick Service to get my trades.