Marriage can be a beautiful thing. It begins, typically, with a joyous wedding celebration, attended by friends and family, followed by an exciting getaway for the newlyweds. However, this momentum may not last forever. Two people, once so in love, may begin to grow distant over time as the monotony of everyday life begins to take hold. Soon, they may find themselves wondering what happened that caused their marriage to fail. While this is certainly not the case for all marriages, this pattern of an initial thrill followed by subsequent stagnation can certainly apply to active traders and the performance of a particular stock or sector when day trading.
That tingle that you feel when a pair of lovely eyes meets yours for the first time is certainly comparable to seeing a potentially promising stock. Before long, you can’t think of anything else, and after an exchanging of rings or trades, you find yourself married to that stock. Soon you find out that the spouse you found on Tinder isn’t what they were pretending to be, don’t judge a book by its cover, do your research.
Getting married to a stock — or even a particular sector in the market — can be risky for an active trader. Sometimes, you might be trading a stock for six months, and everything has been going great, but then it hasn’t been in play at all for two weeks. Rather than desperately waiting for something to change, it might be time to move on. Flexibility is key when deciding when to get in and out of trades.
As an active trader, keeping an eye out for new opportunities can give you a better chance to succeed than if you are stuck on one particular stock or sector. Identify trends on an intraday or intra-week basis. It is important to be able to recognize what is in play and what’s not so that you can identify what you should or shouldn’t be trading. Even if you have or haven’t heard of the stock before, it may be worth investigating it.
You know your own trading style best so do what works for you. This may not be trying to follow what the market as a whole is doing, find your own niche, beauty is in the eye of the beholder. This might not be following and competing against the big players instead maybe it’s more stock specific. By specializing and identifying strong and weak stocks by learning everything you can about them you will have a better understanding of how to maximize your gains in them and when to divorce the “losers”.
Lightspeed Trader is an active trading platform that lets you find and trade stocks on the fly, no matter which one strikes your fancy this week. With low cost trading on stocks and options, you can make the most of your strategy. To learn more, give us a call at 1-888-577-3123 or download a demo today.
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