I have lately become more busy and can\\\'t spend as much time trading (back to the office). I was considering using certain moving averages or pivot points as entries but using a 10% stop below that average. For example, with a lot of stocks around the 200 DMA, I was considering using the 200 DMA as a buy point and using a sell point about 10% below. I would use 5-10% positions so I am risking about .5% to 1% of my portfolio per trade. I would likely focus on the leaders with some in the growth stocks that are around the 50 DMA.
Thoughts on this strategy?
Congratulations on being more busy!
I think this is a decent strategy for your situation. You certainly do not want to own stocks that are falling 10% below their 200sma. Also, you may want to consider the type of stock to own at this levels. A slower moving stock is more ideal that a volatile one when we are unable to watch our stocks throughout the day.
For instance, a stock like MSFT which just traded above its 200sma is a more controlled moving stock than say an UPST which is quite erratic and could trip your stop-loss in a hurry. I hope that make sense?