Stock Trading Strategy

I Too Have Been There:

    Like so many stock traders I too have wasted over $20,000 on useless "black box" systems. I have no less than five "trading systems" sat in my draw. Trading systems that not only cost thousands of $$$'s but lost me money in the stock market. I vowed many years ago NEVER to buy another black-box, software, trading system. You have no idea what the system is. It could be  a couple of moving average crossovers.

   I subscribed to newsletters and stock picks that made it sound like they had the Holy Grail of trading. Guess what? As soon as I started to use them they lost me money. They all told me the same old, sorry, lie: "Every system has it down cycles." Funny, in their hype they seemed to overlook this statement!

   Like you I thought the answer would lie in studying technical analysis. Boy was I wrong. The more I studied this B*S* the more confusing my trading methods became. Not only that I was always losing money whilst trying to develop my own Holy Grail. The answer does lie in developing some secret timing indicator. Leave this to the academics. Whilst SOME basic technical (price and volume) analysis is good, most of it is "smoke and mirrors." If the system does not make common sense do not trade it! You must have heard the saying

                                 "I've never met a rich technical analysis"

  Many technical analysts I have met NEVER EVEN TRADE. Strange?

  I do not have anything against technical analysis. In fact I use some basic T.A. my-self. But when the study of T.A. overtakes the study of how to make money in the stock market you run into problems.

  Like you I jumped from one hot trading system to another desperately trying to find a system that would work. Losing countless thousands of $$$'s along the way. I cringe at the way I used to desperately believe all the hype all those years ago. I suppose this is how they make their money.

  Well, EVENTUALLY, I did find a method that really works and what I learned was shocking! Shocking in that I found to really make money in the stock market 90% was right under my nose. It was all there. Like a jig-saw it simply took a long time to piece it together. It took many years of effort, studying, trial and error but I have found it and I'll NEVER look for another trading system again.

   Does this all sound familiar? I am sure it does to many. stop chasing rainbows and start making money. If I can do it so can you!

  Don't be fooled by other system vendors who lure you in with guaranteed profits. Short-term trading systems or "secrets of the trade." None exist. Your key to making money in today's stock market is:

1) Keep it simple. The very best systems really are quite simple and make COMMON SENSE!

2) Go for the BIG moves where the risk/reward ration is skewed massively in your favor.

3) Optimal position sizing. Example, when you are right on a trade you want to make as much profit as possible.

4) Manage the risk.

5) Trade what you see, not what you, or others think.

6) Adopt the right traders' psychology to trade successfully.