This is the strategy suggested to me by an influential stock broker from Mumbai:
I don’t believe in writing long-form content and therefore will make this short and to the point. Here’s the 2-2-2 Strategy.
STEP 1: Slot Your Trading Style
What are you?
- Day trader
- Weekly trader
- Short term trader (1-2 months)
- Medium term trader (6-12 months)
- Long term value investor
This strategy does not apply to medium term and long term investors.
Step 2: The 2-2-2 Stock Market Trading Strategy
For Day Traders — If a trade does not swing your way in 2 HOURS, get out of it
For Weekly or Fortnightly Traders — If a trade does not swing your way in 2 DAYS, get out of it
For Short Term Traders — If a trade does not swing your way in 2 WEEKS, get out of it
The broker I met says this strategy works 80% of the time.
Try it for a couple of trades. If it works for you, great!
That’s it.
For adding this i will say for day traders can book 2% max profits and get out for short term traders book 5% and medium term parallel to 10 to 20 % this not rule for long term investors because they deserve for much more …subject to Right Stock Right Time (RSRT)
Awesome thought, it sounds true as trading is driven by Euphoria and news rather than fundamental strength
Clear direction. Please also furnish your views in case it swings favourably then what % of profit we may look for.
Regards