The Perfect StockSome people try to find the perfect stock that gives off a perfect buy signal. They only trade when all the planets align and everything that can possible be a good sign is a good sign. It is easy to want to find the perfect set up, a buy signal that just cant fail. All we have to do is click the buy button and we have won. Unfortunately, even though it is easy to want to find the perfect set up, it isnt easy, or even possible to find it.Every trade no matter how good it looks involves risk. Instead of looking for the ultimate signal it is much better to develop a system that works in the long run. It doesnt matter if you lose money here and there as long as you keep those losses small and keep your winners big. Doing that should help your odds of making money when everything is said and done. Finding a stock that is strong and gives off somewhat of a buy signal is the best anyone can do. Nicolas Darvas wrote a book back in the 1950s, called How I made $2,000,000 in the stock market. In it he says, I slowly came to see that though I was becoming a diagnostician I could not be a prophet. When I examined a stock and found it strong, all I could say was it is healthy now, today, at this hour. I could not guarantee it would not catch a cold tomorrow. That is very true in the world of trading. You never know exactly what will happen. All you can do is find a trade that seems to be strong at one point in time and limit your losses in case you are wrong. That philosophy will help you to get into stocks and actually start to make money, instead of waiting on the sidelines for the perfect stock.
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