Reader Jake write:

Hi Gary,

What is your average time spent in each trade nowadays?

The reason I ask is because you recently said that you don't hold a trade more than 5 days, yet I'm sure I read in one of your many excellent articles from "theStreet.com" days that your average time in a trade (using 6% stop & 5% limit) was 7.5 days and that you set a timestop of 30 days? Why the big change to "less sitting"?

Best wishes,

Jake

Jake, thanks for the question. Wow: the article you referenced is an oldie: I think I penned that nearly 10 years ago!  In any event, with new targets and stops (i.e. 3%/4%) just by definition, the average trade is closed out more quickly.  I will have the occasional trade stay open for maybe 7 days or so, but most come and go within about 3 or 4.  Obviously, the profit per trade is lower, but you’re then able to “flip your inventory” more quickly, generating higher yearly profits just by the increased velocity.