Your trading needs to be easy, simple and as stress free as possible.
Reduce the stress, feel in control and you will trade well.
Trade well and you make money.
Follow the three sections of this site to learn more
- Have an Objective
- Its about YOU
- Keep it Simple
The method I focus on is medium term trend trading. Rather than hold a stock too long and watch it give back all its gains, or hold it forever in the hope one day it will come back to where you bought it, I like to use a method that will sell a relatively small loser before it becomes a big loser, and save as much capital as I can on that bad performer so I can re-employ that money back into the better performing stocks.
I don’t want to do it too often. I don’t want it to be too hard. I don’t want it to be too risky. And I certainly don’t want to spend enormous amounts of time doing it.
Have a look at this next graph, it displays the results achieved per year over 10 years by a relatively simple trend trading system, it is almost identical to the system I use. The percentage returns per year are displayed on the left side of the graph, and the years displayed along the bottom.
Graphs last updated 26/4/16 (this is course system 4 ) on the ASX 300
Look at Graph 2 above. It’s the same system and results in both graphs, but the first graph shows the results on a yearly basis and the second on a monthly basis.
This system averaged 2% per month or 25% p.a. It has some great periods and some not so great. But if you don't stay in the market and trade your method, you won't get the big gains when they come along. The more simple and robust your method and plan, the more inclined you will be to stay in the market.
One of my objectives is to show people a simple method to trade, one that will get them used to being in the market, increase their chances of winning, reduce the chances of loss while they build their confidence along with a knowledge base for themselves.
BETTER STILL IS THIS
Here is the same system trading a group of stocks with strong fundamental criteria, something I also teach you to look for before buying a stock. You can see how much smoother the equity curve is, not giving you the big pullbacks in the market that are hard to cope with psychologically.