Stock Exchange: Long-term (Energy) And Short-term (Finance And Software)

J: And where would that be?

F: ETF at NewArc dot com. At least until you give me my own personal email address!

J: That is another expense. We’ll do it when you earn it. Any other ideas for us? You started out with a heavy weighting in basic materials and energy. Do you still like stocks in those sectors?

F: Yes. I made some great early gains.

J: And recently?

F: Those groups have pulled back with the resumption of economic skepticism.

J: You know about that?

F: Yes. I read more news – and more relevant news – than Oscar. My time frame, unlike the rest of the group, is not a quick trade. I am playing for the long run.

J: Thanks for explaining. By the way — Where is Athena?

F: Chuck Carnevale gave her last weekend off.

J: Chuck wouldn’t say that! And besides, that was a week ago.

F: That’s what she told me to say. She has nothing new this week.

Conclusion

Your time frame matters. The issues for the economy and market in the long run are quite different from a trading perspective of a few weeks. Day traders have a more extreme problem.

As we have frequently seen in this series, there is no “right” answer in trading. Your time frame and method determine what is right. Your results are measured in the long run, not by a single trade. 

Stock Exchange Character Guide

Character

Universe

Style

Average Holding Period

Exit Method

Risk Control

Felix

NewArc Stocks

Momentum

66 weeks

Price target

Macro and stops

Oscar

“Empirical” Sectors

Momentum

Six weeks

Rotation

Stops

Athena

NewArc Stocks

Momentum

One month

Price target

Stops

Holmes

NewArc Stocks

Dip-buying Mean reversion

Six weeks

Price target

Macro and stops

RoadRunner

NewArc Stocks

Stocks at bottom of rising range

Four weeks

Time

Time

Jeff

Everything

Value

One month or long term

Risk signals

Recession risk, financial stress, Macro

1 2 3 4
View single page >> |

The Stock Exchange does not have all the answers, but it provides good ideas and a stimulus for your own trading.

Getting Updates

We have a new ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.