One of the difficult aspects to trading in the Public Stock markets today is in keeping the correct perspective on the proper strategy for a successful Long Term account. For those that follow me you know that I run such an account. I find myself managing this account with more frequency due to the elevated volatility (darn daytraders, lol). What this means for this account specifically is:
- Stocks are called away more often due to the fact that I sell calls against the position
- Requires a wider stop on a LT position due to the whipsaw action that occurs
- The initial stock picking process for the LT acct remains the same, but selection has to be even more precise
Now for those that have asked questions regarding some recent trades, let me help clear up my approach further here. I do attempt to be clear when posting a trade in terms of what account I am trading in, but I do realize that it would be hard to follow this over time as some exits are weeks later.
A recent example is with WFM (Whole Foods) where I have a Long Term account position, and a Swing account position at the same time. Each position has its own strategy attached and therefore have differing rules on entry and exit execution. Today I did trim some of my Long Term account holding (as posted via twitter) but have not exited any of the Swing position – it has a wider stop.
Remember, there are several key things to stock trading – including timeframe.