Our online stock trading strategy is to profit from the use of swing trades.
At Insight Stock Picks, our swing trade strategy consists of two types of swing trades; short term swing traders and long term swing trades.
Short Term Swing Trades:
Short term swing trades have a holding period of 1-10 trading days and a profit target of at least 5%.
We use short term swing trades more when the market as a whole is not trending. Under non-trending market conditions, individual stocks tend to trend less and therefore we set our targets lower.
Often a short term swing trade will change to a long term swing trade if market conditions change from non-trending to trending.
Long Term Swing Trades:
Long term swing trades have a longer holding period of up to 30 days and a larger target of at least 10%.
We use long term swing trades more when the market as a whole is trending. Under trending market conditions, individual stocks tend to trend more and therefore we set our targets higher.
Stop Loss Placement:
In our daily alerts we provide a stop loss for all orders. We believe entering the market without a stop loss will only result in reduced profits in the long run.
We use stop losses to exit trades that have moved against us by more than our tolerance level or that we no longer believe will trend in the short term.
We also use stop losses to lock in profits on winning trades. We do not want winning trades turning into losing trades and through the use of proper stop loss placement we avoid this problem.
Proper stop loss placement is one of the keys to successful trading and we follow a strict stop loss placement system. We believe our subscribers should strictly follow this system also.
Summary:
Our stock trading strategy is based on 2 old principles:
"You can only take from the market what the market is willing to give you"
"Cut your losses and let your profits run"
We have been consistently profitable on a yearly basis with a conservative disciplined trading system that uses these two basic principles, along with our proprietary technical indicators, as the foundations for all our selections.