A Guide to Short Term Trading

We define "short term" as a period of several weeks to months. In this time frame our signals provide a means to take advantage of the normal fluctuations in value of a position. This requires several trades per year but leads to much better returns than a buy and hold strategy, e.g..

Note that we are not suggesting day trading or even trying to avoid day to day variations in the price of a stock. Our main goal is to protect against the occasional substantial drop in the price of a stock, and to catch a significnt rise. The STT Advisor is the tool needed to time the trades. A conservative approach used by many to manage their 401k, e.g., is t opark the holdings in a money market in down periods and move to stocks in an up period. A more aggressive approach used by some is to shift money to positions which move contrary to the market or by selling short.

The investment strategy employed by each investor will vary, but the use of our signals will enhance the strategy with which you feel comfortable.

Features

  • STT provides a graph of the stock price with markers indicating whether to buy sell or hold.
  • The graph is easisly obtained by typing in the stock symbol
  • There are two ways to assess the viability of our recommendation
    • Simply look at the graph to see if the recommendations have been accurate over the period of the graph; about three months.
    • Refer to our risk measure which indicates how well we have performed with similar investments in the recent past.

Past Performance

Past performance is shown in the following link. Examples. It is important to note that our recommendations are more accurate for some stocks than others. Our experience shows that, on average, using STT can double the value of a holding in a period of about two years.



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