Hey 5-Star Trader,
As a momentum trader, I spend many hours in and out of trades using different strategies to my advantage. Each of these strategies are different from each other and requires a unique approach in order for them to work.
But with a multitude of strategies to pick from, how do you know how to execute them?
Below is a list of my favorite strategies and how to manage them.
- Futures –
My futures trades have by far the quickest turnaround. For these trades, I only manage them for a day.
- Options –
Options is my bread and butter strategy. For these trades, I will set my days to expiration (DTE) anywhere between one and 30 days. Typically during earnings season is when you will see the widest gap in my trading in terms of time frames. This is because if I am trading a “run into earnings” move I will likely set my DTE for 21 days. Whereas with trading an actual report, I would set my DTE to one day so I can trade the overnight move.
- Investing –
Investing is by far the longest trades I put on. Usually, I like to watch my stocks mature. This means I don’t typically think about selling my positions until at least five years later (though if your patience allows, 10 years would be even better!).
Unlike most traders, I learned how to trade options before I started investing in stocks. Talk about ironic!
No matter which order you have learned each of these strategies make sure you pay attention to your timeline. You won’t believe the difference it can make.