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Individual Investor
Michael Arold
Director, Channel Sales,Computer Software
- Education University of Stuttgart, Germany
- Qualifications Master in Aerospace Engineering
- Investment Experience 16 years private investing, 4 years short term equity trading
Technical Swing
Swing trading strategy that owns or shorts stocks that are more volatile than the S&P 500. My rules-based system seeks to reduce drawdowns and beat the benchmark index with lower volatility. My goal is to find stocks within strong trends that are moving sideways in the near term, and buy or short the ones that I think are likely to resume their moves.
The approach begins with a rigorous top-down markets analysis. I seek to gauge the direction of the overall market and to identify possible short-term market themes.
Next, I look for specific asset classes, sectors, and stocks that my research suggests are likely to benefit from those themes.
I then apply my own approach that seeks to maximize reward and minimize risk by using targeted, rules-based stock entries and exits.
Next, I look for specific asset classes, sectors, and stocks that my research suggests are likely to benefit from those themes.
I then apply my own approach that seeks to maximize reward and minimize risk by using targeted, rules-based stock entries and exits.
My proprietary momentum scanner helps me to identify potential outperforming stocks from a universe of more than 3,000 names.
From that list I create a watchlist of about 100 individual stocks. For each, I monitor technical indicators, analyst recommendations, news and commentary.
My goal is to identify stocks with extremely bullish or bearish sentiment. I seek to take short-term trading positions that are opposite of the crowd.
From that list I create a watchlist of about 100 individual stocks. For each, I monitor technical indicators, analyst recommendations, news and commentary.
My goal is to identify stocks with extremely bullish or bearish sentiment. I seek to take short-term trading positions that are opposite of the crowd.
Under my trading rules, no single position -- long or short -- is expected to put more than 1% of the strategy’s total capital at risk.
I typically hold 5 to 15 positions and seek to maintain some diversification across sectors. Positions are usually held for a period of two days to two months.
My typical trading scenario offers at least double the potential reward, relative to the potential risk, if my price objective for the stock is met.
I typically hold 5 to 15 positions and seek to maintain some diversification across sectors. Positions are usually held for a period of two days to two months.
My typical trading scenario offers at least double the potential reward, relative to the potential risk, if my price objective for the stock is met.
Soft stops are used on all positions in an effort to prevent major drawdowns. I also will sell when a stock has reached its price objective based on my analysis of price patterns.
I tend to avoid microcaps, biotechs, and stocks that I believe may be vulnerable to external events that may cause sudden, dramatic price moves.
Model commentary
The Fed, not fundamentals, is driving the stock rally
23 May 2013
The Fed is pumping $80 billion a month into the markets.
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