After fifteen years of amazing trading the stock market, here are six things we have examined that will support you to become a far more reliable, more professional trader.
Only trade quick-moving trends
Our capability to profit from the stock market depends more on this plan that any other; only trade quick moving trends.
The outcomes of your trading depends minimum on which stocks you trade, and also on how fast those stocks are working from price stage to another.
Quick-moving trends permit us to accumulate profits fast. It is an easy as that.
Only purchase stocks that present promise
The second most vital plan is this: You should only purchase fundamentally perfect stocks that are also trending very high, because they show you with the safest purchasing opportunities.
Purchasing a stock just because it is going up can job out well for you.
Anyway by restricting your purchases to stocks that are both principally sound AND increasing in worth, your potential for building a gainful, long-term trading business is multiplied many fold.
Use a verified entry trigger
Regardless of the principal outlook for a stock, or whether it is trending very high, forever wait for a verified entry signal before committing your funds.
A candlestick charting signal such as Bullish Engulfing is a classic entry start, and is something you can often trust on to get you into up-trends.
Verify the end-trend
By drawing a twenty period easy moving average on your charts, you have an easy method for determining the trend.
Never purchase or hold a stock that is trading below a twenty period easy MA. For Clarity, colour Red in a down-trend and Green in an up-trend.
Trading profitably means we must take incomes. Anyway taking them too early means we can have an important amount of finance on the table unnecessarily. To lock in incomes, use what we call the “Thin Blue Line” sign.
The Thin Blue Line Sign is created by drawing a blue, eight-period exponential moving average on your charts.
Sell on a near below the eight-period exponential MA, even if your twenty period MA is still green and increasing.
Buy high, sell higher
After selling on a near below the eight-period moving average, purchase again on a near above your eight-period MA, as long as the stock is still above an increasing twenty period MA, indicating the trend is continuing very high.
This means you can exit and enter long-term trend different times, but you will be out of the market when that trend certainly comes to an end.