Swing Trading Strategy: Trading Around a Core Position | Recommended by Julia

Here is the link. 

What does it mean? How do you do it? Trading around a core position is about going, say long on stock XYZ at a certain price for 1000 shares and you're allowing yourself a maximum of say, 3000 shares (you have to work this beforehand and have it in your trading plan). So you could buy another tranch at a pullback. If the market recovers you could sell back the 1000 shares. You are buying in pullbacks and scalping in combination with your core position. The point of the whole strategy is that you almost have two trades running at the same time. One is the swing trade and you also have multiple trades going on at the same time.

Julia's note

I like the explanation of steps:

1. Choose a stock to invest in, long term the stock will go higher.
2. Setup core position, given an example, one thousand shares, target price, and stop loss price, max share, for example, three thousand shares.
3. First purchase core positions with stop loss, and then while waiting for the up process, swing trade when pullback with stop loss.
4. Incredibly good explanation, I learn the trading around a core position very well.