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Your strategy for trading stocks in relationship to other approches

QuestionsCategory: QuestionsYour strategy for trading stocks in relationship to other approches
tjbrune asked 2 years ago
Hi Pat/Owen, I have a question/remark from last webinar regarding method we use to ride trends. I watched some videos on youtube related to trading. I have seen basically two approaches for tackling a new bull market. One is to identify the best stocks and stick with them until the end of the bull market (so sit through many consolidations and pullbacks to 50SMA), like David Ryan does (longer term trading). The other is to look always for new breakouts, ride the stocks for some time (until they reach some profit target), take profits and look for next breakout like Mark Minervini does (shorter term trading). Your presented strategy of partially taking profits seems to be in between those to me. You ride 8EMA/21EMA as long as possible, and take profits when they are undercut. Finally, on a pullback to 50 SMA, you get out of your last shares and move on to next breakout. So, you do not need to worry if you took the best 3 leading stocks, for example, and no need to worry if the pullback to 50SMA fails. So your method appears to me more safe than longer term trading. Can it been seen this way ? Many thanks and grateful for your feedback. Best Regards, TJ
1 Answers
Avatar photoOwen Staff answered 2 years ago

Hi TJ,
Pat made this video for you...

tjbrune replied 2 years ago

Thanks Pat and Owen for your explanations and showing some detailed examples. They are very useful to me.