Exploring new trading strategies

As you may know, I generally consider myself an investor and not a trader. About three years ago I challenged myself to learn to pick better entry and exit points.

Picking better entry points definitely turned my personal stock picking from a money-losing endeavor to a potentially benchmark-meeting one. And yet, it could be better. In the long run, I don’t hold winners long enough; and I hang on to losers and take their losses. I don’t worry too much about losing money, but I’m probably underperforming the “buy the nasdaq” strategy over the last 15 years.

For the next two weeks, I will be experimenting with actual short-term trading. Each day I will attempt to select one or two stocks to trade. I will do this on a paper basis to gain confidence, with the potential for a rare exception. I will listen to the talking heads and see if it’s actually possible to add value with short-term trading … or not. I have never done this before, assuming that I would not be good at it. But you know what? I do not know.

At the very least, I will learn something.

Here are some of the things I’ve learned so far:

• Full candles at the open are very bullish, but if you chase that, bail quick - a few minutes maybe.

• Allow a 1% pullback before buying. Similarly, set stop at -1.2% or so .. maybe less. Gotta dial this in over time.

• I need to do a better job screening - low float and <$20 price.

• Premarket action and the first minute is not a great guide - look for more than a minute of sustained interest