Saturday, July 13, 2024

Time horizons for Stock plays: Playing off the edge

 One way to do is classify if the edge into 5 buckets: 

1) scalping (momentum for the day), short term (2 - 5 days), 

2) swing (2 weeks to 12 weeks), position (1 quarter to 4 quarters), core (1 year - 5 years). 

Typically 1 is based on event that causes clear supply / demand imbalance for the day. 2 is statistical arbitrage (over bought / oversold). 

3 is earnings based moves that will last till the next report or price action concepts like breakout or range reversal. 

4 is financials or fundamentals based momentum. 

5 is for long term secular plays

Courtesy: Mukesh Masand

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