Todays trading style

If you're having a difficult time making money in the current market conditions, it might be wise to change your approach in how long you hold on to your positions. As a day trader my hold times are short. And during the current market conditions there are getting shorter.

Sure it's all too easy to look at the end of day chart and say the trend is obvious, but when you are trading during the market gyrations you need to take the signals it's giving. Consequently my winners have gotten smaller dollarwise but larger in quantity.

Basically when the momentum stops in whatever I'm trading I bail out and take the profits. Some magic plan, huh?. Then I usually trade them the other direction beacuse that is where they are usually heading. I haven't had huge gainers, I don't have huge losers. I have to be very immersed in the momentum flow as usual but it is still the same action plan that I have always followed. My trading plan has not changed but merely adapted to the conditions.

It would be nice if SKF would move $80 in a day like it used to, but I am content to take .80 moves all day long.

The following posts today demostrate.

Taking the profits after a quick pop/drop ensures that money is flowing in my direction. Never underestimate how picking off .40, .50, .60 runs can make your account grow. If you hold out for bigger profits in todays market they will more often than not never materialize.

Sell ERX

Sell POT

COver SKF

Markets are popping so longs are the way to go.

Bot ERX

Short SKF

Cover POT and long again

COver MOS

Cover VFC and look for some better movers.

Add some MOS short to go with POT.

Momo in POT is not strong so I'll take the $ and trade it short again.

VFC is heading down so now a short is the better trade.

Rotate into something that is moving.

POT long

VFC has stalled so I'll take the profit that the markets offer up. Any way you slice it a .30 gain in 5 minutes is a good trade. I can always re enter the trade if it breaks to a new high. What I will avoid by taking the profit now is tying my money and focus up if it flatlines or watching unrealized profits dwindle if it falls back down.

Momentum is the key to zero in on. It sounds basic but never try to swim against the tide. Go with it instead. Take VFC here for example. It's just shown up on my hitting new highs alerts. I've never seen this stock in my life and have no idea what they do. At this moment it is hitting new highs. There is a high probability then that it will go higher. I need no facts, rumours, conjecture about why. Green candles are saying it is going higher so taking a long position is merely going with the flow.

I'll bank those quick drops and look for others

POT

RIMM

Opportunities in todays market conditions.

It 's been choppy trading lately but don't let scare you away as one never knows when the next opportunity will arrive. The key to trading today for me is the same as ever, 1. Spot the momentum 2. Trade my plan.

Lets take a look at a couple of stock that I used to trade but haven't in quite a while.

Red candles in the S & P and QQQQ say that momentum is to the downside, so

SHort POT

Short in RIMM