The Big Gains In Stocks are Made BY:
Only trading the “almost” sure things.
Going for the big moves….4X+ your losses.
Compounding this over a few trades.
This then rules out: day trading, short term trading, penny stocks, Stories, hype, gossip. Beating earnings, 99% of T.A. Charting. Predicting, Shorting stocks, options etc..
Trading should be:
Systematic. Have rules and stick to them regardless. If it means no trades for 4+ months then so be it. If it means taking a 40% loss but you followed your rules to a “T” you did nothing wrong.
I only find about 6-10 stocks a year on average to take positions in. Based on the past 20 trades the system is at 80% winners. Trades can last from 12-20 months if they hit their target.