One Stock Trading



 High Probability – One Stock Trading.

 

You can trade stocks in a way that is highly accurate with a positive win/loss ratio. IF you trade “sure things” instead of gambling.

Over 90% end in profits. It is usually the market crashing/correcting that leads to the odd loss. It’s a surprise when one these stocks do not end in a profit.

But it is not short term trading. Speculating in penny stocks, day trading etc. If you go for the almost sure part of a move, get out with a good profit instead of hanging on until the end your accuracy shoots up.

I would suggest anything less than $100,000k you go all in one stock until you get your account above that then split into 2. Maximum of 4.

Even with 90% accuracy it is risky. Risky in the sense should you hit a losing trade whilst all in it will mean big losses. So only trade with risk money this way.

High priced, High volume, U.S equities long only. Stocks that trade in the millions on volume. No gambling in illiquid, low priced, penny stocks, options.

Based off one key fundamentals. Price and volume momentum.

2 sectors only.

100% target once in. (explained i take most off the table here but let some ride)

40% initial and trailing stop.

Usually 1 or 2 opportunities a month. Some months none. Average 8-15 opportunities per annum market dependent. bear market there will no new opportunities.

Over 85% winners with a 2.8:1 reward/risk ratio

Average trade length:

Winning trades: 10 months.

Losing trades 1-3 months.

1 stock portfolio: Allow for 40% draw-downs. Only invest up to 3% of your Net-worth. Simple. High risks for high rewards.

 

What Works In Stock Investing:

    • High probability trades.
    • Bigger wins than losses.
    • High priced, highly liquid stocks.
    • Key fundamentals do count.
    • Certain sectors produce the big winning investments. Others should be avoided on a probability basis.
    • Being 100% systematic.
    • Loose stops. Have an exit point but allow for 30%+ corrections along the way.
    • Month to month = predictable. Day to day  = random.
    • Experience. Seems the only way to stick to your system is to fail in all other methods first. IF you survive this you should come out with a method that works for you.
    • Basing a rules based system off past stock moves.
    • Accepting you are going to have losing trades from time to time.
    • Accepting this is as boring as anything  i have ever done. It’s not like running  a business where the more you put in the more you get out. It’s the opposite. Let the stock do the work you monitor it.
    • Accept you could go a year and do nothing. If there is nothing to do..there’s nothing you can do about it!
    • Not everyone can do it. If you thrive on action, being busy you might struggle with this.

What Doesn’t Work:

  1. Trading high risk penny stocks
  2. Day trading
  3. Short term trading.
  4. Risks on a trade are bigger than the rewards.
  5. Trading off advice.
  6. Trying to force a trade or breaking your rules because you have not traded for 6 months.
  7. You trade for a monthly income.
  8. You have all your networth in stocks and rely on the profits.

Signals and managed stock service:

$600 per 12 months:





momentumstocks909@gmail.com

Mark

For actually reading the whole page you can download my e-book I wrote in 2000..wow….when I was living on the beach in South Africa..young free and (single) 7 Habits of a Highly Successful Trader

RCD Wealth UK Ltd reg number: 10990106

***Past performance does not guarantee future performance. There is a risk of loss. Only trade with money you can afford to lose***

Author: admin

stock trader,money manager.

Leave a Reply