siding replacement highland park james hardie siding northbrook hardie siding siding replacement lake-in-the-hills install vinyl siding lombard .. Chicago Drug testing

KISS Formula

There are formulas for just about everything, but it has been shown that the simpler the formula or method of doing a particular task the better it works. It has evolved down to KISS ? Keep It Simple Stupid.

This also applies to trading in the stock market. There are literally hundreds of formulas, both technical and fundamental that are easily available to investors. Each trader has his own method he uses. Every professional trader on the floor of the stock exchange has his own variation on some major proven formula. The more skilled he becomes with it the more he feels it is the best one.

Sometimes it takes years for a trader to settle on one method or group of methods that he uses to signal buys and sells. It took me many years to find that technical group that worked for me when I was an exchange member.

For some it evolves into long term trading and for others it can be buying and selling in a matter of minutes. The time period is not important. The method is. Even as a floor trader on the commodity exchange I had only two criteria I watched before entering into any position.

All professional traders and investors are aware of the single most important fact and that is how much I am willing to lose before I exit this new position. Every KISS formula has an exit strategy. Every professional knows in advance how much he will allow himself to lose if he is wrong. The professional does not set a limit on the winning side of a trade only on the losing side.

Ask any full time professional and he will tell you if he is right 50% of the time he considers that to be phenomenal. When I was on the floor I was only right about 40% of the time, even about 20% and wrong about 40%. BUT I made $3.00 for every dollar I lost. Small losses and big winners are the key to success. This is the key to any profitable formula ? keeping the losses small.

When I see advertisements in the financial papers for methods claiming to be right 80%, 90% of the time I cringe. It just can't be. There is no trader I ever met who was that good and I have known some exceptional traders.

The major text on technical analysis is "Technical Analysis of Stock Trends" by Edwards and Magee now in the 17th printing of the Fifth Edition that lists multitudes of methods. They all work, but many are complicated. A magazine called Futures Truth analyses 200 commodity trading systems in each issue. Fundamental Theory is equally complex.

There are software programs that allow the investors to enter as many as 30 parameters. The more complex it is the less chance it has to work. And the biggest obstacle to any program is the trader himself. He cannot hesitate when a buy or sell signal is given.

Keep your formula simple and execute the signals. You can be a winner.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

Trading Systems

To become a successful trader you must have some kind... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

True Investment Road Maps

If you don't know where you are going any road... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Take The Time

You must take the time once a month to review... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

How We Eluded The Bear Of 2000

The date October 13, 2000 will forever be embedded in... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to... Read More

Boiler Room 7/17/00

On Friday or Saturday evening my wife gets a movie... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

How To Be A Winner

Everyone who invests in the stock market wants to be... Read More

Dont Spend Another Dollar on Business Opportunities Until You Read This

With an insecure job market, overworked employees, insufficient retirement savings... Read More

Buying Stocks and the Importance of Correct Timing

An investor can find and research the best stock on... Read More

Trading Tips No 2: The Big Lie in the Stock Market

It is commonly reported that the stock market averages about... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

When?

When will the stock market stop going down and start... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

How To Make, And Keep, Money Trading Stocks

If you are serious about making and keeping money by... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

10 Tips For Creating Wealth From the Stock Market

1. Do not spread your money too thin.My friend has... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Trend Trading - Trading Stocks Using Technical Analysis and Swing Trading Strategies

Peter is a professional trader, Paul is not. Peter has... Read More

Hedge Fund Advertising

Have you seen all those big full page ads for... Read More

induction bulbs led light bulb Pete's produce ..
induction bulbs led light bulb Pete's produce ..