“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
“The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.” -George Soros
What do I trade? I do not limit myself to one particular niche, but I tend to play a lot of stocks in the Bio-Tech sector. I focus on the ideal setups of a couple different strategies that I list below. If the set up is not there I simply do not take the trade.
“Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.” -George Soros
My main focus is playing a lot of Bio-tech stocks using strategies such as the ‘Run-up’, ‘The Sell Off’, ‘Bottom Feeding’, and basic ‘Range Trading’. These offer me the best tools to profit in a variety of different market conditions. The ‘Run-Up’ tends to do better in a “Bull” market, while the ‘Sell Off’ exceeds expectations in a “Bear” market. Basic ‘Range Trading’ and ‘Bottom Feeding’ plays tend to do average in both market scenarios. Money moves in and out of this niche quickly, and there is money to be made from both sides, long and short.
“Be fearful when others are greedy, and be greedy when others are fearful.” -Warren Buffet
I also tend to play around with ‘Pump and Dumps’ (Seen below). This was the original strategy that I used when I began trading, but it tends to be immensely difficult for me while I am at school. I only trade these if the pattern is PERFECT and I am able to give it my 100% undivided attention. These stocks are usually extremely volatile and can offer great gains, but always remember, that with a greater reward there is a greater risk.
“Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes.” -Jesse Livermore
I believe strongly in the phrase, “Trade the Trader.” In order to profit from the market, you have to anticipate what others are going to do, before they do it. For that to happen, you have to understand the human mind, and how it emotionally reacts to the news it is given. Studying the psychology of trading is AMAZINGLY over looked in my eyes and it boggles my mind because it is surely the most important. You can have an edge over anyone if you know how to react, when to react, and how others react. That I believe is the key to making money in the market.
$Never stop studying, there is always more to learn.$