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Monday, July 15, 2024

Stock Trading

I’m glad to see that you have taken an interest in stock trading. No matter what your level of interest or experience level I plan to have tools, tip, techniques, and information that will be helpful in your trading.

Stock trading can be as exciting as it can be profitable. To get started on the right path to trading stock profitably stock trading education is extremely important. You can learn stock trading in a number of ways. There are stock trading courses available to help you learn stock market trading. You may also want to subscribe to a stock trading newsletter to further your learning. 

Whether you trade stocks on the Dow Jones, AMEX, NASDAQ, NYSE, or other stock exchange you will need to be prepared to profit. After all, if stock trading can create the wealth and financial security that you desire it makes sense to educate yourself.

In my early years of trading stocks I tried just going with my gut feel and just shooting from the hip. Well, as you can imagine the results were not exactly what I was looking for. As it turns my level of stock market intuition made it difficult for me to be a good discretionary trader. At that point I knew that I needed more structure and discipline in order to become a stock trader…a successful stock trader.

I looked into various stock trading software and started reading books on the stock market. I was fortunate enough to learn about stock trading systems and that is when things really started to turn around for me. A stock trading system gave me the structure and discipline that I need to move forward.

I use technical analysis in my stock trading. I build my trading systems using technical rather than fundamental analysis. I won’t get into a debate as to which method of analysis is better. All that really matters is what works well for you. My simple philosophy is that whatever market forces and factors cause a stock to move will ultimately be reflected in that stock price over time.

I use stock charts to get a visual perspective of stock market movement. Stock charts also allow me to see the entries and exits of a stock trading system. This let’s me see in an instant that the system is performing as expected.

One of the most overlooked and undermentioned elements of successful stock trading or any kind of trading for that matter is money management. Legendary trader, Larry Williams, refers to money management as "the keys to the kingdom" and I completely agree. A lot of emphasis is placed upon trading systems themselves. All other things being equal if 2 stock traders were both using the exact same profitable trading system the trader using proper money management will always come out on top.  In the long run it is many times more likely that the trader using proper money management will become much wealthier than his counterpart.