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.

In The News:

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

Apple recently notified a small number of iPhone customers in 92 countries that their phones may be under attack by mercenary spyware.

An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.

Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.

A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.

The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.

Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.

Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.

If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.

Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.

Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.

Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.

Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.

The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.

Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.

The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.

Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.

Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.

The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.

The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

KISS Formula

Stocks & Mutual Fund