Have you ever heard this saying? "Plan your work and work your plan!"
Well, when trading stocks in these tough economic times, you must live by that saying or else you'll lose all of your money... and FAST!
So what you're about to discover is a 3 step trading strategy (or plan) you can and should follow if you want to ensure your success as a trader.
Step 1: You need to look for trading strategies that have proven time and time again to produce more winners than losers. The trading strategy that fits your lifestyle is the best one to choose.
For example, if you have a career and trading is not your full time gig then swing trading strategies are the ones to choose from. If you are retired from one career and trading is a new career, then day trading might be good for you. That's how you decide. It is very individual, so do not let anyone tell you different because what worked for them might not work for you.
Step 2: Look at fundamentals. They are part of your plan and there are many to choose from like earnings per share, multiple times earnings, float, shares outstanding, etc. but they all say different things to your plan. They are necessary to the information gathering process. Each one has its own weight to your criteria. Get 3 out of 4 or 5 of the fundamentals in the right zone, then you can move on to the next step.
Have a work sheet ready to list all the formulas that are correct. Then you can move on to the next part of the plan. There is no getting around it, you have to do the work. It pays to do the homework here because the technicals work better when the fundamentals are in place. Your chances of success are much greater!
Step 3: Bringing in the technicals. You want just one indicator that will give you the information that you need to trade off of.
Well, here's a dose of reality...
There is no such indicator that will give you complete information. You need a collection of indicators on your chart so that you can decide more intelligently.
Most beginner traders think that the technicals move the market. My mentor, Larry Williams, taught me different. He taught me to think that the fundamentals move the technicals. They talk about technicals on cnbc and Bloomberg TV all the time.
For example, they say when one squiggly line crosses another that is the buy or the sell signal. In my opinion it is just fools gold that appears like the Holy Grail of indicators.
Technicals are the last thing you want to look at... Not the first.
Technicals are used for trend identity, momentum swings, and entry and exits points.
But as you can see, it pays to plan your work and work your plan. Otherwise, you'll just be throwing mud up against the wall until something finally sticks...if it ever does. And if it does, it may be too late and you're flat broke.
This is just the tip of the iceberg as far as picking the right trading strategy for you. Make sure you check out the link below to see the system thousands of traders, including myself, have been following to see consistent profits...even in these volatile market conditions.
Remember, the trend is your friend until the end.
If you fail to plan, you are planning to fail. Don't make another move until you find a proven stock trading system to follow. With my system you can make money from the stock market, even during a recession and no matter how bad the economy gets. Become a stock trading pro today by going to http://StockTradingProSite.com
Article Source:http://EzineArticles.com/?expert
No comments:
Post a Comment