If you’re thinking about going long term think again.  The economy is still very unstable and I predict it will take 1-2 years before things get back on track.

Right now short term profits is the way to go.  If you make a profit don’t be shy to take it.  The market doesn’t go straight up so any run that last 3-5 days could retrace.

I would also advise against holding stocks into earnings.  Holding a stock through earnings is a huge risk and not worth it.

Sectors worth watching: Oil, and Financials

I’m always searching for great traders and to learn a little about their strategies. Recently I had the opportunity to do a short email interview with a trader from South America who had made $50k in just one month.

He considers himself a trend and basket trader. Here is how it went:

Q: Can you tell me alittle about your trading strategy?

A: I am scalper or sometimes position day trader so I like looking trend stock and add size (pyramid) but when I find a good trend day I am a basket trader.

For example, I will be buying a basket of serveral stock of 100 shares and if it goes good so i will buy other 100 …..

Q: Lets say you find a good trend and you buy a bunch and it goes up and you buy some more, when do you feel like you will take profits and if it drops where do you take losses at?

A: I like technical analysis so I look chart SPY or Dow and trade with them. Sometimes if its strong day I let it run till the close , or sometimes I look for target level of spy.

For Stop I use technical, sometimes I have an amount dollar of stop or level of spy or dia.

The last month some days I bought or sold baskets the last 10 minutes of market, strong or weak day.

For example a basket of 60 position of 600 shares.