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I bought my first stock in the 1960's and just a few more until the 1980's when my investments were mostly mutual funds. For the last 13 years I've been heavily trading stocks. After 45+ years the returns get better each year. Someone said that if you just make one less bad trade per year and one more good trade it makes an incredible difference in the long run.
Study the methods of several traders and trading services. Even the best are rarely more than 60% accurate. Find something good from each source and use it in your master plan.
I've studied IBD, Barchart, Vectorvest, Morpheus Trading, Zack's as well as IIC, Mr.Market, Skiracer, Riverbabe, Phoenix, and other individuals on this site. Check stocks they mention and run them through technical and fundamental screens. Study the chart patterns and see which are likely to be successful.
Some trades will be just a bit longer than a day trade, super momentum stocks, others, swing trades lasting 4 days to 30 days. You'll have some that reach a set goal, say 15% and are sold. Throw in a few long termers. I like stable high div. jobs when you can reinvest the returns. Many of the best highest returners can be held for years multiplying like crazy.
I study the most promising from the above , make my buys, then stick to a max. stop of 8-10% loss. The many yearly contests here show me that stocks dropping 10% rarely recover during the same year. You'll get a stock every year or 2 that drops after hours on bad news that blows by your 10% stop, but you'll recover.
Especially with the dividend stocks you'll eventually get a core of stocks that are in the green and just get better with age. PM is an example of such a stock. I'm up over 100% on PM.
Sell those that hit your stop as quickly as possible and reload with your good prospects. Some you think can't miss will end up being duds. Others your are concerned about will surprise you. Don't fall for the latest big name being touted by the pundits. Ever notice how many of Mr.Market's picks seem obscure when he first mentions them?
Maybe I'm crazy , but I'm holding 38 stocks, some of them duplicates in 6 different accounts. Not counting about 5 mutual funds, these are my gains/losses on current holdings. Longest held stocks 5 years, shortest, 2 days. Gains 150%,143%, 134%, 133%,84%, 72%, 68%, 67%, 51%, 45%, 43%, 38%, 32%, 31%, 30%, 25%, 18%, 18%, 17%, 15%, 14%, 14%, 8%, 6%, 5%, 4%, 3%, 2%. Losing stocks 10 at -1% to -5%.
As you can guess, the 100%ers are the dividend reinvestors such as PM and HQL but not always as in the case AAPL bought for my son and never sold. I cashed in big time with AAPL and am recently back in it.
Don't dwell on your losing trades. Sell them and take them off your watch list. The majority are better off gone once the trade sours.
If your good picks out number your bad and you get rid of the bad ones before they stink up the joint you'll be more successful each year.
----------------billy
Study the methods of several traders and trading services. Even the best are rarely more than 60% accurate. Find something good from each source and use it in your master plan.
I've studied IBD, Barchart, Vectorvest, Morpheus Trading, Zack's as well as IIC, Mr.Market, Skiracer, Riverbabe, Phoenix, and other individuals on this site. Check stocks they mention and run them through technical and fundamental screens. Study the chart patterns and see which are likely to be successful.
Some trades will be just a bit longer than a day trade, super momentum stocks, others, swing trades lasting 4 days to 30 days. You'll have some that reach a set goal, say 15% and are sold. Throw in a few long termers. I like stable high div. jobs when you can reinvest the returns. Many of the best highest returners can be held for years multiplying like crazy.
I study the most promising from the above , make my buys, then stick to a max. stop of 8-10% loss. The many yearly contests here show me that stocks dropping 10% rarely recover during the same year. You'll get a stock every year or 2 that drops after hours on bad news that blows by your 10% stop, but you'll recover.
Especially with the dividend stocks you'll eventually get a core of stocks that are in the green and just get better with age. PM is an example of such a stock. I'm up over 100% on PM.
Sell those that hit your stop as quickly as possible and reload with your good prospects. Some you think can't miss will end up being duds. Others your are concerned about will surprise you. Don't fall for the latest big name being touted by the pundits. Ever notice how many of Mr.Market's picks seem obscure when he first mentions them?
Maybe I'm crazy , but I'm holding 38 stocks, some of them duplicates in 6 different accounts. Not counting about 5 mutual funds, these are my gains/losses on current holdings. Longest held stocks 5 years, shortest, 2 days. Gains 150%,143%, 134%, 133%,84%, 72%, 68%, 67%, 51%, 45%, 43%, 38%, 32%, 31%, 30%, 25%, 18%, 18%, 17%, 15%, 14%, 14%, 8%, 6%, 5%, 4%, 3%, 2%. Losing stocks 10 at -1% to -5%.
As you can guess, the 100%ers are the dividend reinvestors such as PM and HQL but not always as in the case AAPL bought for my son and never sold. I cashed in big time with AAPL and am recently back in it.
Don't dwell on your losing trades. Sell them and take them off your watch list. The majority are better off gone once the trade sours.
If your good picks out number your bad and you get rid of the bad ones before they stink up the joint you'll be more successful each year.
----------------billy
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