Pick a Trading Strategy and Stick to It

Jordan Mendiola

Photo by Luca Bravo on Unsplash

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After the GameStop frenzy, more people are putting skin into the game more than ever. There was even a Super Bowl commercial for Robinhood and E-Trade. Trading stocks come with an endless number of possible strategies to make money.

The three most common strategies are:

  • Long-Term investing
  • Swing Trading
  • Day-Trading

The lowest risk is long-term investing because over time your company will go up as long as there are no hiccups. 

The medium risk option is swing trading because some timing is involved in cashing out when you’re up. 

The high-risk option is day-trading because a few seconds could mean you’re up $100 or down $100. It’s very fast.

So why do some people stray away from their trading strategies? A various number of reasons. Emotions, FOMO, chasing the hype, and being undisciplined. 

Long-Term Investing

Good old fashioned “set it and forget it”.

If there’s a company you have high-conviction in and believe it will go up over time, put your money into it and rarely check it. 

The more you check it, the more likely you are to pull your money out as soon as it takes a 5% dip. If anything, look at these “dips” as mini black Friday deals for you to better your position. 

Anyone can invest in a long-term portfolio, look back on it in ten years and see their money appreciate 200%. It just comes with being smart about what you decide to invest in.

Here are my picks for February:

Top Stock Picks for February 2021
Here are my top five stocks to keep an eye on in February for investing and trading optionsmedium.com

Swing Trading

If you’re willing to hold a position for a few days, weeks, or even months, you are swing trading. 

This is where you predict there will be price action working towards your favor and you want to time it.

The best thing you can do is strategize your entry-level and your exit level. So many traders I assist are great at getting entries, but struggle to find an exit.

They either exit too early before the play develops. Or, they exit too late when the move’s run is over and it’s now in a losing position. 

Here are 7 smart habits of great investors:

7 Smart Habits of Great Investors
Your hard-earned money deserves to be multiplied and not minimizedmedium.com

Day-Trading

This is by far the highest risk strategy to trade. The majority of day-traders lose because it isn’t easy. 

Price action changes within seconds and you can make a lot of money quickly, just as fast as you can lose it. 

Traders over $25,000 can do unlimited trades in Robinhood and this serves as a barrier to entry for serious traders only.

I have had incredible days, but I have had bad days as well. The best action is at the first hour of the trading day or (8:30 am CST to 9:30 am CST).

Here is an article on my day-trading routine:

The Routine of a Stock Market Day-Trader
Some of the do’s and don’ts of day-trading you can use to make it a more enjoyable experiencemedium.com

Final Thought

If you’re looking to make money in the stock market, choose a strategy that suits your personality, and don’t let your emotions get in the way.

Trade wisely, seek help, do your due diligence, and things will eventually work in your favor. 

If you have any questions you can join the Haikhuu Trading community where I will be there to answer any and all questions along with my great team.

The link to the discord is here.

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Creative entrepreneur, U.S. Army Engineer, and dedicated runner. Committed to sharing ideas that lead to more fulfillment in all areas of life. Email: mendiola1829@gmail.com

Chicago, IL
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