Why learn just a few Stock Strategies?
Focusing on just a few stock strategies can be beneficial, especially to someone who is just starting to learn to trade the stock market. Some of you may be thinking you need to learn many different strategies. You believe that the more strategies you have the more money you will make. That is not true a good 2-3 different strategies should be all you need. Think about the math there are 1000s of different oscillators and probably 1000s more possible strategies out there. If you tried to make all of them work you would get no were except a migrane. It would be chaos. If you focused on just 1 or 2 of the strategies for your trading system you could become very profitable. In fact some of the most profitable traders in history only focused on a few strategies for each market trend. They became experts on reading the market and how best to enter into a trade on the system of their choice. The money poured in just because they knew how to read and play their system. This makes me wonder why some people believe that if you want to be a good stock trader you must know, EVERYTHING, about a company. (Most of the people who believe this have never traded stocks by the way.) We do not trade a stock because of the company, we trade the stock because we can read the trend and play with the trend.
When you are trading stocks become a specialist. It will make you a much better trader. Trying to master too many different strategies at once will overwhelm you. Your trading will suffer. Decide What Kind of Trader You Want to Be The first step to being successful as a trader is to decide what kind of a trader you want to be. Do you want to profit from the short up and down swings. This means you would be going after the big moves and you may have to suffer many small losses before you make big money. Do you want to trade the trends of the stock and be in positions for months at a time? This can be easier for most people to get used to because you do not have to worry about the short everyday moves in the market. Or do you want to invest for the long term. Finding strong stocks to hold onto for the long term has made many millionaires around the world. |
