Dave Landry – A Simple Approach
I just watched Dave Landry’s Youtube video Introduction To Swing to Intermediate-Term Trading. As he suggests, it’s a simple approach to capture both short-term and longer-term gains.
I’m happy to say that, other than where he takes his entry points, I recognised a lot of what I have been doing with my own trading.
I intend to keep following Dave as his aim of capturing short-term gains AND longer-term gains makes sense to me.
Here is his basic plan:
- Find a strong uptrend – You should be able to look at a chart and be able to draw an upward arrow.
- Look for a correction – The correction should be from as few as 1 day (a knockout pattern) to as many as nine days.
- Enter the trend if, and only if the trend starts to resume
- Once the trade is entered, place a protective stop – this will be based on the volatility of the stock. If a stock is bouncing around 3, 4 or 5 points a day, then the stop should be 3, 4 or 5 points away from the entry
- If things go well, we begin to trail the stock as it moves higher
- Once we get the initial profit equal to the intial risk (i.e. the stock has risen as far above the entry point as the initial stop was below the entry point), we exit 50% of our trade to tale partial profits
- Continue to trail the stock higher, loosening stops in order to ride out longer-term winners.