There are many great day traders that only focus on one or two stocks. There are many great long term investors that only focus on dividend stocks, and there are many great short term traders that only focus on specific areas of the markets. There are many reasons for this, and over the years I have learned that liquidity is one of them. The other is familiarity.
See, at first when you delve into the world of trading it seems that there is almost a limitless number of opportunities, and stocks to choose from. As you progress you learn that the majority of the time people are focused in on one area, or one group of stocks. Over time you become very familiar with these names and, like it or not, you tend to gravitate towards them.
Now, everyone is a little different here, but I too notice that I always focus in the same areas of the market, or at the very minimum, in the same list of stocks.
One area that I gravitate towards is the gold mining stocks. There are times that day trading is the objective. There may be investment goals in my long term portfolio, or even the use of options. I find that the gold mining
Not only that, there are some lower priced, slower movers, and then there are a handful of higher priced, faster movers. I just like that there is a little of everything. Also, there aren't a million different stocks in this space. There really are only 10-15 good names so one can become very familiar with the names individually.
Have you ever heard someone speak of a stock and say, "I don't like the way it moves.", or "their earnings moves can be wild."? Well, these movements are noticed over time due to someone "specializing" in these stocks. Its like your family pet. When you first get them you aren't quite sure what makes them tick, but over time your relationship is developed and becomes smoother and smoother.
