Hello and welcome to Stock Trading Ideas.
I have been trading for about four years, and had mixed success with short or long term trading until recently. When I started my investment career, I became fascinated with the idea of value investing and then later day trading in the hope of making quick bucks. I was always looking for the Holy Grail and as we traders know, there is no such thing. We all spend way too much money for the hype that’s out there, and with all the talk on the street about the money being made day-trading I started to look for a system or method to trade the stocks and options, but when I looked into the amount of margin and the attention you needed I quickly became disillusioned. I have had my share of success and failure and learned the hard way that day trading was not for me as it required me to be watching my positions every second I’m in it. Even though I’m an avid market follower, I’m still not in that league of day traders as it takes more time away from family and personal life! After I had almost lost more than half of my account, I came across some great books on trading by Jesse Livermore and William O’Neil. Well, as I started to “study” (not read) their trading strategy, I realized that it fit my personality and my trading goals. I guess I like looking at the charts (technical analysis), and I don’t like all that research for trading long-term positions based on fundamental analysis. The reason was simple and clear, if a company’s earnings and revenues are accelerating it will show up on its chart in the form of price and volume action and will be opposite if it has decelerating earnings and revenue growth.
I started looking at charts and watching the news on CNBC (personally don’t recommend) everyday. I read everything on day trading, swing trading, value investing, technical analysis, fundamental analysis etc.etc. that I could get my hands on. I think, because of all the stuff I had read about, such as fundamentals, technical analysis, and all those crazy indicators like RSI, Fibonacci numbers, Elliot waves, Stochastics, it would be just too difficult to remember every single indicator and trade with it. After all the trials and errors, I decided to settle down with price and volume action and if need be, take a look simple moving averages. I still have some of those fancy indicators on my charting software but I rarely use them. As I said, price and volume action should tell you the complete story about any stock.
Believe me you will do much better with this simple technique than the experienced trade who has too much emotion and indicators to look at. This method is simple and you can see that in my stock picks and the trades I make on this website.
Acknowledgments:
To my wife who has put up with me while I learn the ropes of trading and has been sacrificing many things just to see me succeed in what I want to do. For her patience and love, I owe her a debt of gratitude. We could have been traveling to all those exotic places, having a great time, but she never complained…
I am so thankful to all the traders who have touched my life with their opinion, suggestions, systems, methods, testimonials, and those who take their valuable time to visit this website and send in their comments/questions/concerns.
Let’s make some money together while having fun.
Happy and Profitable Trading,
Stock Trading Ideas.