Trade to Win: Proven Strategies to Make Money

Chapter 15. Stocks and ETFs

The financial markets offer many ways to make money. Some traders master the art of trading stocks, while others concentrate their efforts on futures or bonds. I trade all of these, and much more. In addition to the various products that can be traded, there are also many styles and methods of trading. That is, some traders enjoy day trading, while others see the day trader as a gambler and avoid all associations with that particular trading methodology. Many of these folks tend to be in the market for the long haul. They buy and hold their positions for years and never experiment with any other trading strategy. Then there are swing traders, who fall somewhere in the middle of these two extremes. They buy and hold for days, weeks, or months but do not retain positions for the long term. Money can be made using all of these approaches. However, you need a strategy that works.

People in the industry like to classify everyone. Many people refer to me as exclusively a day trader, but that is not true. Personally, I do not believe in labeling. I think that the market should tell you when to get into and out of a trade. Sometimes that means that you buy and sell in the same session. Other times, that means that you buy this year and sell years from now. If the trade is working and paying you, keep it. If there are no profits or there are losses, consider getting out. Every trading day I look at prices, and generally I trade. In that way, I am a day trader. ...