cement board siding crystal lake siding companies park ridge vinyl siding cost kildeer hardie siding johnsburg soffit installation hawthorne woods .. Chicago Drug testing

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of course, as many systems out there, as there are traders. Some systems get you to buy on strength and sell on weakness others do the opposite.

Some investors succeed as value investors , a la Warren Buffet ; others make their millions in momentum trading . I have even heard of an astrologist who uses the stars to trade profitably. Although, there are a variety of methods, the point I am trying to illustrate here is this: there are many ways to profit from the markets, but you ultimately must devise a system that is your own, because the personalization will act as a motivational discipline to stick with the plan.

There is however, one common element amongst all successful traders...they have a systematic way they approach the market. This approach is unique. In reality, no two people have exactly the same amount of money, tolerance for risk, personality, time or experience. Therefore, the key to success is to design a system that is suited for you.

Many traders fail because they do not assess how well a trading system matches their temperament. Instead, they chase fads, searching for the "Holy Grail" of trading success; or they waste their money on the latest investing software or buying up the tapes of the latest self-proclaimed stock market guru.

The fact is there is no perfect system. Successful investors succeed because they choose a system that they feel comfortable with, not one that claims to be the current trend. A cool, disciplined trader will make money with an "average" system, while a nervous, arbitrary trader will wreck a "brilliant" system.

The key is to develop a methodology that maximizes your strengths and minimizes your weaknesses. Nevertheless, how do you do that? First, define your objectives.

Ask yourself these questions:

1. Am I designing a trading plan for cash flow or capital growth?
2. Do I want to trade part time or full time?
3. How much money can I work with?
4. What annual rate of return do I want? (Note: the higher the return, usually the higher the risk).

Decisions such as these will have the largest impact on the style of your trading system.

For example, if your goal is cash flow and low risk, buying or selling at extreme levels (overbought/oversold) is an unlikely style. If your goals center on quick capital growth, high returns and high risk, then bottom picking strategies and gap trading may be your style.

I had one client that was a wiz at buying and selling on eBay. This person was a beginner so I suggested buying the trade closer to the 52-week low, then selling the trade when it foresaw a profit.

Entries and exits must be precise and must follow a strict set of rules.

Styles range from aggressive day traders looking to scalp few point gains to investors looking to capitalize on long-term macro economic trends. In between, there are a whole host of possible combinations including swing traders, position traders, aggressive growth investors, value investors and contrarians.

Moreover, your style will depend on your level of commitment and experience. Day traders are likely to pursue an aggressive style with high activity levels. The goals would focus on quick trades, small profits and very tight stop-loss levels. For this, the trader uses intraday charts to provide timely entry and exit points. A high level of commitment, focus and energy would be required.

On the other hand, position traders are likely to use intraday charts and pursue 1-8 week price movements. Focused goals on short to intermediate price movements and the level of commitment, while still substantial, would be less than a day trader.

With this in mind, be sure to define your trading objectives as best as you can. Unless your system matches your own criteria, you will never make big profits. You need to ask yourself the simple question: "I am trading in the market because I want to __________"...

Answer this and you are well on your way to setting your portfolio objectives.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.

His most recent course Ultimate Trading Systems is a step-
by-step trading roadmap to designing profitable trading
systems. Learn how *you* can become one of his students.
Click Here ==> http://www.ultimate-trading-systems.com

Receive David's free trading tips by sending a blank email to:
==> ultimate-trading-systems@getre sponse.com
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

In The News:

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Stock Market Diversification

In one of my previous articles (Investing in the stock... Read More

Nest Eggs and Omelets

Do you have a nest egg? You know, a place... Read More

Social Insecurity

Just about everything you have been told about Social Security... Read More

The Skinny on Mutual Fund Investing

Mutual fund investing is a lot like Thai cooking. Everyone... Read More

9 Deadly Trading Mistakes!

The following are a list of nine things you want... Read More

Shorting Stocks ? The Basics, Part II of II

After the publication of the first part of this two... Read More

Its Better

Question: How does it get better when it gets worse?Last... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

The Inside Scoop on Mutual Fund Rip Offs

The bear market that showed up at the end of... Read More

Dont Ask Your Broker

Unfortunately, most of you who are reading my column are... Read More

Low Tide

When you stand on the ocean shore and watch the... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

VooDoo Training For the Stock Market

If you go to Haiti or other places in the... Read More

A Stock Market Investment Plan that Never Lets You Down

The bulls and bears of the stock market are both... Read More

Inertia Syndrome

When it comes to buying a stock or mutual fund... Read More

A Funny Thing Happened on the Way to the Stock Market

On the 40 year journey through the turmoil of a... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

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

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Fake Money

Reach in your pocket and take out that big roll... Read More

high bay lighting led lights wholesalers Pete's produce ..
high bay lighting led lights wholesalers Pete's produce ..