10 Tips on What to Do to Specialize
Previously in one of my Student support publications I suggested how to specialize in a trading style. I had a student write to me about that publication and here is what he said, “Over the past few years I’ve been quite successful in my trading thanks to you and your course.
About a year and a half ago, I was able to quit my job and now enjoy the freedom and quality-of-life that full-time trading affords. I thank you for that. In one of your e-mails, you noted that there are many trading styles and suggested that we “specialize” in one to maximize our effectiveness. I did exactly that…”
The student took my concept of becoming a specialist and created his own unique trading style.
A specialist reaps higher returns because they are focused, and certain kinds of stocks behave in a certain way because a small section of Market Participant Groups dominate in that stock. In other words, certain traders trade certain types of stocks. If you learn to read a type of stock really well, you will be able to anticipate the patterns with far more accuracy.
Here are 10 tips on what to do and how to specialize in a trading style:
1. Choose a price range that you are comfortable trading. Don’t look at every priced stock there is. Select a price range and study only those stocks. Keep the price range relatively narrow. Instead of looking at stocks from $2-40 narrow that range for example to under $5, or $20-40 stocks. Each price level of stock reacts differently, that is why we have different Buy Stop Limit Order price points for different price ranges of stocks.
Martha Stokes CMT
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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