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You just rotate to different groups of stocks that are hot at that time. Right?

Actually that is exactly the opposite of what I really do or try to do. Most of the time I have a couple position trades running which matured over time (couple months). Many of those started as swings. I then add most fresh money swing trades when I see quality setups showing up after a period of market turmoil. This is what I often refer to an opening window of opportunity. Those early movers of an opportunity cycle are the stocks I focus on the most as most traders will miss out on them waiting for more confirmation. When these early movers ran their course and start to hit logical resistance or even flash red flags I DO NOT just rotate to the next hot group. This is because those early movers are in sync and the next hot thing is obvious to everyone and often attracts the late comers and FOMO traders. I don’t say that they can’t go up, but overcomitting to those stocks more often than not messes with my market timing.

The cardinal sin of swing trading is to not be able to sell into strength when swings reach their natural price targets. If you are unable to fight your greed and stick to swings with full position you will be forced to sell them on the way down which puts you in a weak position. The cardinal sin of position trading however is to overcommit to the next hot group which then corrects and increases the heat until you are forced to sell your strong position trades. If that happens always sell the recent swings you entered!

The correct thing to do is as follows. You must be able to engage with the early movers without fear when others still lick their wounds. Then you sell partial profits of your swings into unusual strength when the late comers push the markets higher. Then you wait for those early movers to go through a natural pullback or correction. You can of course always engage with fresh stock ideas along the way but make sure not to overcommit! Try to stick to your position trades all way through and even think about adding swings (scale-in) on top of your regular position when a proper setup emerges in one of them. All this is an organic process without strict rules, you go over charts and listen to the feedback of stocks.

Over time you will learn to create a feel for the market and understand how it moves in a waves in order to inflict specific emotions into the crowd at specific times (the 90%+ who lose so that you can excel). Once you manage to be ahead like this you turn into an observer from above, reading the collective hive mind ready to strike at the correct opportunistic moment. For this to work you MUST isolate yourself from all the noise. It is all hidden in the charts, trust me! It will take time to develop this skill.

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