When I first started trading eight years ago, the process of picking stocks was different than it is today.
The market pace is so steady that buying stocks like Caterpillar, IBM, and Boeing is almost guaranteed to make a profit…
Everything changed with the collapse of financial markets in the fall of 2008. Lehman Brothers, a financial firm that had been a mainstay of Wall Street for decades, collapsed…and the impact was felt around the world. The market has recovered significantly since the disastrous decline a few years ago…and many stocks have recovered and surpassed their pre-crisis prices.
For individual investors looking to manage or participate in their own portfolios, the art of stock picking becomes extremely important. Fear has seeped into the minds of many investors, slowly affecting their ability to make informed, confident decisions…
Celebrities put global news on the front page of every news station… Unemployment data, consumer confidence data and earnings are just a few of the issues that could turn the market – leaving traders feeling as though they’ve been caught in the middle of the day A roller coaster ride at the end.
The good news is that there is a way to trade in this volatile market – a way to trade while still making consistent profits and sleeping peacefully at night.
The biggest secret that talkers, fund managers, and financial advisors don’t want you to know is that you can increase your success rate tenfold by leveraging the strength and trends of indices like DIA, SPY, and QQQ to time your trades. This applies to long or short trades…
Leverage industry strength and trends, strong fundamentals of solid companies, and index charts to trade successfully even in this volatile market we find ourselves in today.
A good charting system is essential for picking stocks today…the art of reading these charts can be learned in a very short time. Once you establish your trading rules, it’s really a matter of doing what I call the « market dance »… trading with the ebb and flow of the constant flow of data and news. Sometimes cash is the most profitable position; As the U.S. dollar weakens, stocks offer lucrative profits for patient and alert traders.
As traders, we may not be considered artists, but the act of stock picking has certainly become an art form!