I have been trading the stock market for more than 20 years using technical analysis. I mostly swing trade and position trade. I trade mostly stocks and stock options, and some sector and market index ETF. I do not day trade often. Most of my day trades are resulted from my swing trades’ stop being hit due to either intentional tight stop or adverse volatile price movement.
I do not trade based on the stock's company fundamentals. I try to keep my technical analysis as pure and simple as possible using price resistance and price support levels. Indicators I monitor are purely for confirmation only. I do not trade off indicators. I use the Fibonacci retracement levels to monitor possible confluence. Again, I do not trade off Fibonacci levels for entries and/or exits. Most of my trades are based on price bounce off support or breakout from pull back. I do not bottom fishing. I am more of a momentum trader and my motto is buy high sell higher. I enter trades based on specific setups and triggers, I do not simply chasing a price move and blindly buying the high. I rarely average down, the only time I will consider average down is when I'm building a position and an entry trigger occurs from the pull back. Even then, I will use my discretion to either add or wait for higher high to add to exiting position. I trade mostly long on stocks and use PUT options mostly on the short side.
I size my position based on percentage of the account size being at risk per trade. Therefore, my return is based on how many time the percentage at risk (R), not the percentage of the trade.
I am a student of the market and constantly learning by watching the market. I do pay attention to macro and global events to develop my trading catalyst. I am also a practitioner of the Dow Theory. I use the Dow Theory along with various market breadth indicators for detecting market top and bottom. I do not try to predict tops or bottoms, but will acknowledge them after they have been confirmed.
From all my years of trading, I have found the most important things to become successful in trading are to control your risks and control your emotions. More importantly, be humble and always expect the unexpected.
You can follow me on Twitter @smtraderCA
If you have any question or feedback on anything that I have posted, please feel free to use the contact page to send me your questions and comments. Thank you for reading my blog and good luck on your trading.