Trading with a Long Term view

Once our minds are ‘tattooed’ with negative thinking, our chances for long-term
success diminish
” John Maxwell

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.

5 thoughts on “Trading with a Long Term view

  1. 1nvestor, my name is Joe. I follow you on stocktwits, Twitter, and when you pop into the upsidetrader chatroom. I’m a subscriber there under felice3089. I just watch the chatroom as I’m a novice(understatement). I was wondering if you would ever accept a question privately. I realize you are extremely busy. I understand completely if you cannot for whatever reason. If you can, my email is felice3089@Comcast.net. I want to thank you also as I bought rimm Dec 50 puts months ago when you mentioned them in Joe’s chatroom. : ) Sorry for the long post but I didn’t know how I could reach out to you.

    Thanks , Joe F

  2. Thanks for responding back. So here is my dilemma. I am embarrassed to post this publicly, but I really need some advice. Yesterday I bought 5 Apple Nov 420 calls for $21.00(I know it was stupid). As you know, the stock got killed after earnings and the calls are down a large amount. I think they closed near $6.80. What would you do? Should I sell them soon tomorrow or do you think I should wait. I know in the end it is my decision, but I could really use some direction. Any advice would be really appreciated. If you can’t, I understand. Either way I’m a big fan of yours. I follow you everyday on stocktwits.

    Thanks, Joe F

  3. You have a few choices here – and they all have some difficulty attached to them.
    1) sell the calls now and take the loss here. move on.
    2) sell weekly calls against the 420s until Nov expiration (very likely recover more than the 3K or so that is left in the 420s)
    3) sell 1 lot of the calls each week until Nov expiration.
    4) don’t every do that again. buy a call spread. 🙂

  4. Thank you for the advice. I’m a police officer in NJ. If you ever need my help in NJ let me know. I’m sure you won’t, but you never know… : )

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