Pimp My Trade

My Trading Style

Posted on January 22, 2009 by Adam

I’m a swing trader, plain and simple. That wasn’t a choice - it just suits my emotional temperament. I like to hold positions for a day to a week, riding out the swings in the market.

I pride myself in finding high probability, low-risk setups and trading them with stocks and options. When I know I’m wrong, I get out immediately. When I’m right, I reap the rewards.

My style is completely technical. Although I believe fundamental analysis works, technical analysis works for me. I get my information from the charts and I trade what I see. I love to trade around price patterns, breakouts, and trends.

I’m usually an option buyer, but I’ve been known to take a spread trade from now to then. No exotics for me, though. I’ll leave those for the more adventurous options traders. I generally like to use options as my instrument of choice, but I go with stock for longer term positions and illiquid markets.

I’m a big fan of point and figure charts, options, risk management, and position sizing. I’m not such a big fan of earnings season, cheap stocks, or day trading.

Basically I don’t care which way the market moves - I’ll make money either way. I only take the best possible trades I find, and because of that I see quality results. I think my strategy beats the markets, but I’m not a magician. I fight for every penny I get and I’ll continue to do so until I can’t do it any more.