Wednesday, September 29, 2010

How to make money in stocks...

Step 1: Wait for high probability window in markets...i.e. T2108 below 20 + indexes down for 3 - 5 weeks etc...;

Step 2: Keep stocks with high probability of rising + rising faster than the markets eg. CANSLIM, or stocks with EP or momentum etc...;

Step 3: Look for clearly identifiable patterns in stocks with clearly defined risk + reward with potential reward 3X greater than risk;

Step 4: Place trade with appropriate position size and wait for either stop loss to be hit or profit target to be hit (granted your overall portfolio risk is still within acceptable levels);

Step 5: REPEAT EVERY SINGLE TIME ABOVE CONDITIONS ARE MET!

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