oh - risk management is another meeega important topic
trade management too - once in the trade, how do you manage
so possibly lots more topics, but I canāt think of them all at once
Someone recently refered to part of how I trade as āmomentum tradingā - not sure how much that helps, but maybe you know what that is (I donāt - Iām just guessing what it could mean).
I have a few strategies. But all of them rely on understanding price (I donāt use indicators - other than 2 simple moving averages).
Iād say you need to understand quite a few things: price, patterns, momentum, the psychology of why things happen when they happen, candles & candle formations, how trends begin and how they end (multiple ways), pullbacks, breakouts, climactic moves, ā¦
(thereās probably more, but I canāt think of any more right now)
So Iād say you become as good as possible on these individual āingredientsā, then attempt to bake a cake. And do a loooooooot loooooot looooooot of paper trading of live markets - so you put your understanding to work. Then review your trades. And continue growing that way.
I donāt have a limit or minimum and it severly depends on the market - but Iād say I trade on average 30 stocks. Although I have traded only 5 at times, and sometimes more like 50 and was limited because I didnāt have enough capital to put on more trades. So massively depends on the market - itās not always favorable for swing and core plays.
Look up the PDT rule - pattern day trader rule.
You need to have $25k - once you have that you can trade in and out of as many stocks as you want. Below $25k youāre allowed to close 3 trades you opened within the same day - after the 2nd trade you closed that you had opened in the same day, you get a warning, and if you open a 3rd trade and close within the same day, you can no longer make any more trades that day. (look into this further as Iām not sure what - if any - further āpunishmentsā there are)
All the best!
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