The market gapped higher for its third consecutive Tuesday of 2012, which again helped to make the difference on the week for the indexes. The remainder of the time was marked by a considerable amount of choppy, trendless action, serving as another reminder of the importance of trade selection in this low-volatility environment.
For the week, I took a number of entries as both day trades and swing trades, and it was a really nice week. Both timeframes provided profits, which is a big advantage of having capital at work across multiple timeframes.
As I’ve been doing lately, I wanted to give you a show-and-tell look at the trades I took this week as a recap. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late.
Here’s the video, and I hope you find it helpful! (Be sure to watch full-screen and select 720p in the player for HD quality).
Jeff,
If you have a stock, like one or two of those in the video, that goes up all day for a high at the end of the day. Is it a viable option to stay in the stock overnight and turn a good day trade into a swing trade?
I am planning to try that, but I suspect it might be detrimental as often, or more often than it would be an advantage, but I don’t know.
What’s your experience of that please?
There’s the opening gap up issue also to way in. I suppose at the back of my mind I might be fishing for gaps also. I am wondering about the risk reward of that tactic also, before I jump in with both feet.
Thank you.
Hey Mark,
While that isn’t my personal style, it may work for you provided you adhere to 2 key principles…
First, it needs to be a winning trade. Be careful taking home a loser in hopes it will evolve into a good trade, as rarely will that be the case. You mentioned “a good day trade” so I think that’s a given here, just had to mention it.
Second, reduce your size. I trade bigger on day trades since I’m looking for smaller moves, but if you’re shifting timeframes mid-trade you’ll definitely need to scale back in order to help offset some of that gap risk you will incur.
Hope this helps!
Hi Jeff, Nice recap videos. Keep them up….Thanks
Glad you’re enjoying them Jon, thank you for the feedback! You gonna be at the Expo in a few weeks? Would love to see you there.