I am often asked…”How do I learn how to trade with so much B*S* and fraud?”
For a starters switch off Social Media. Be very careful who you listen to. Even people claiming to help are often having ulterior motives.
The truth is trading is very simple. Too simple. That is why vendors have to add several layers so when they charge you $3,000+ for a course/seminar you feel you have got your money’s worth. 95% of it is padding. But where it gets worse is when they throw in parts/systems/methods that lose money.
Buy Darvas’s “How I Made $2 Million in the Stock Market” Read it…follow his principles
Another book I recommend is “Rem. of a Stock Operator” Jesse Livermore
Basically they talk about trend following leading US stocks in bull markets. Which is about 90% of any successful system.
- Be realistic. Big returns can be made but that means big risk. It depends where you are. <$100,000 you might need to take bigger risks until you get to $500,000+. Over $1,000,000 there is no need to take big risks anymore. Even at 25% per annum, low risk, systematic you double your money safely in less than four years. And it takes about five minutes a day to manage.
- As mentioned above it depends where you are, what risks you can afford to take and how much you can handle. Once above $500,000 risk less than 2% on any one trade.
- Winners MUST be BIGGER THAN your losers. There is a lot of B*S* about trading that it has to be long term to be successful. How can you define long term? Days? Weeks, months, years? The better definition is reward/risk ratio. If your risk on one trade is say 40% but your profit target is 80% then your reward/risk is 2:1 at a minimum. Now it depends on how accurate the system is and how much opportunity it gives you. (Another book you might want to read about this is Dr.Tharp’s book on risk, opportunity, etc…I cannot remember the title)
- It must be systematic: No second guessing. No gut feel, no need for advice. 100% systematic. Your job is to simply follow the system nothing else. This is where many fail. Even given a system they change it, do not follow it then blame the system/vendor. We like to blame others for our problems right?
- Once you stop doing all the “wrong things” you are only left with what really works. So stop doing the wrong things. Day trading (listen..day trading was superb pre 2000. Stocks would range $20+ in a day so you could make huge daily gains. But those days are over. Plus..who wants to watch a quote machine all day for a living?) Keep out of scams like forex, binary options, crypto’s, pump and dumps. Your broker is not your friend.
The stock break out system.
Trading high priced, liquid, US growth stocks. It’s about as easy self investing as you can get.
Where to set the initial stop loss so you hang in through random noise
Once in, how do you exit? Should you simply trade the move for as long as possible? (hint: BIG mistake) IF you want higher accuracy, quicker trades then this is where you exit these moves. Time tested across five years of stock data. This was the optimal profit exit.
Why you must only look at these priced and volume stocks to ensure high accuracy.
Stops, exits and money management
The two sectors to keep out of
The scan to run on a free stock screener
Where to monitor your stocks end of day.
You can trade these as diversified or as aggressive as you wish. The more aggressive the higher the rewards the bigger the risks.
Trades typically last 4-6 months.Often getting into great stocks like PYPL,FB, SHOP. The leading stocks on the US market the mutual funds love. Low risk, low stress, 100% systematic.
PDF email delivery.
+ 1-2-3 Trading System
+ 7 Habits Of A Highly Successful Trader
+ An Inerview With Nicolas Darvas
Huge rewards require HUGE risk. Diversification is for preservation not for gains. Put your profits in an index fund.
The system needs to be over 60% winners with a large reward risk ratio. This system fits all the criteria.
With at least a 2.5:1 win/loss ratio. Clearly the bigger the better.
You need to roll trades and use compounding.
EVEN then you have to be prepared for 50% losses.
Interested email me: email@example.com
Momentum Penny Stock Trading System