Q&A by Don Bright
How many stocks do you typically tell a trader to focus on at one time? I’m talking about someone who’s not automated but basically a surrogate specialist in his stocks — would three or four stocks be about the right number?
Thanks for the question, and since we all must adjust our mindset in this ever-changing world of trading, very timely.
We teach our new traders several ways of approaching the market, and one of them is the “surrogate specialist” approach. Going back to my days on the trading floor, we would have pits with three to five primary stocks to focus on, with a handful of secondary stocks. Even though we were classified as market makers, we certainly “specialized” in these stocks.