I'm trying to get to the guts of the matter. For those of you whom are traders, why do you choose the stocks that you choose? Do you scan for stocks that meet a certain criteria?
For instance, it makes sense to me to choose a stock that is highly liquid if I want to be in a high probability trade. I would choose something like AAPL or GOOGL (stock) for a buy and hold strategy. They aren't as liquid as the SPY (option) though. By the SPY being so liquid there's always going to be a buyer/seller on the other side of my trade allowing me to get out and mitigate any potential losses.
If my logic is faulty, please point it out to me. I'm trying to learn something, no arrogance what so ever.
For instance, it makes sense to me to choose a stock that is highly liquid if I want to be in a high probability trade. I would choose something like AAPL or GOOGL (stock) for a buy and hold strategy. They aren't as liquid as the SPY (option) though. By the SPY being so liquid there's always going to be a buyer/seller on the other side of my trade allowing me to get out and mitigate any potential losses.
If my logic is faulty, please point it out to me. I'm trying to learn something, no arrogance what so ever.