sporthunter's Blog : Investing Styles

I consider myself to be a short term to one year trader, more of a swing trader I guess by definition. I set my targets at 10, 30, 89 day EMA. Once a stocks price reaches the 10 day EMA, I enter a position (established trend upward), as the price moves higher I place a 10% stop loss. By placing a stop loss I take the emotion out of the trade. Two options can take place, either the price drops the 10% or the current price retracts back below the 10 day EMA. Which ever happens first, that indicates the sell of the position.

If after a rally the price of a position crosses below the 10,30,89 day EMA a short position can be entered to gain profits on the move downward. Following the trend help perserve capital, and creates opportunity for huge gains in a position. The uses of call and put options can help increase profits in either direct. I recommend using deep in the money options if you are inclined to use those instruments.

I don't use this for my speculation plays, since specualtion plays are more prone to larger swings in price fluctuation. For speculation play you can shorten your targets to 4,19 day EMA.

Would like to know what other strategies others have in place.

Happy Trading