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.
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
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