Short Term Trading

In the chart below I described the way a typical trade of mine goes. The idea is to time the IT moves in the direction of the long term trend in the economy and stock market.

Given the fact that I am able to monitor the market on a daily basis, I recently decided to add a new type of trading to my arsenal. I will call it ST (short term) Trading.

The main idea will be to take trades in the direction of the IT trend and try to time the mini-corrections along the way. I will use a full position when going with the trend and half a position when going against it (I will be very selective in this case).

In general I will use my experience and indicators to determine the market bias for the next 1-3 days. I will take trades in the direction of this bias. When I am not sure which way the market is headed, I will go with the trend if it starts to move in that direction. The 7 hour EMA will be a guide in this case. Any move passing this EMA in the direction of the trend will generally trigger a trade. Here is an example:

The important thing to note is that I have little experience with this kind of trading and thus I do not know the expectation of this trading strategy. I will determine it along the way.

The trades will be posted in real time on the blog. Please, do not try to replicate them in your accounts. Rather use them as a way to develop your trading by taking a different perspective.