Here we will be tracking all of our short term trades in 2021.
Our sweet spot for a short term trade is 9 months, meaning if our initial estimation of trade goes wrong but we still have higher conviction in the stock based on technical analysis of charts, then we hold the position for at least 9 months.
We also recommend to book profits in these trades occasionally if they are in profit. Also, cut losses if we don't expect the stock will bounce in near future.
How do we choose our trades?
- Good quality companies in the midst of trends
- Recently either consolidated, pulled back or broke out
- Alert based on technical chart analysis
Position size is just indicative. You should size your positions based on the risk taking ability and exposure to short term trades you would like to have.
We hold long positions in our portfolio 2021. In that portfolio we hold stocks for 3-5 years, some stocks we recommend to hold for life.