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!