Davis Martin of DailyProfitMachine.com says that traders want to be careful not to tie too much of their assets, time or attention to one trade, noting how diversifying trades can keep profits moving forward in all conditions. Most recently, as an example, Martin cited swing trades of the Financial Select Sector SPDR (XLF) and Newmont Mining Corp. (NEM), both of which worked his way but for different reasons on Monday.
Davis Martin is the head trader at DailyProfitMachine.com. He trades SPY calls and puts and swing trades mid-large cap stocks and stock options. At the time this interview was taped, he had no shares, options or open orders on either XLF or NEM, both of which he held options in until closing out positions profitably on Monday Sept. 25. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.