How to play the game.

First off, you need to give up your emotional ties with the stocks you buy and to the way you trade. You are no longer buying Home Depot Stock because you “like” shopping in their stores or that you “think” the company is well run.

We only buy stocks that show signs of winning big.    Winning means a gain in price over time.    The shorter the better.   The more the better.   “Trend” means a tendency to do something.   Go up.  Go Down. Either way it’s a trend.   Stocks that are going up often keep going up, and up.    Conversely, stocks that are going down tend to do that as well.

A fallacy is an OLD Axiom that “you will never go broke taking a “profit”.  Forget that.   

If you buy a stock at 10 dollars. Say it goes up to 20!  DO NOT SELL.  I know you’ll say    “Hey I doubled my money!”  Well, that stock may go up to 85 and you would have given up all that additional gain!        

Rule #1.   YOU NEVER SELL A STOCK WHICH IS GOING UP!

Secondly.   When you see a stock that you are “playing” going down you get out of that one, like a hot potato!   

Rule #2.   YOU ALWAYS, SELL A STOCK WHICH IS GOING DOWN IN VALUE!  There are a whole lot of people who lose money in the Market.  They do this by holding on to stocks which are going down in value and “HOPING OTHERWISE”. Don’t do that!  Stocks are not your friends or family, they are just chips in your hand or on the table.    Every day you hold on to a stock you are in essence buying those shares again for the current days price. You wouldn’t buy “long” a stock which is going down in value would you?    Well if you aren’t selling it’s the same as buying.   GET IT?   

Rule #3. BECOME YOUR OWN COUNCIL!    The reality is no one knows what the future is going to bring.     However, our systems do the majority of the work for you.  You make the final decision as to which stock/s to buy from a continually developing list.  Load the strategy, # of shares and when the trading conditions are met the stock is “traded”.   The system moves trailing exits as the stock rises in price and when the trend ends. gets you out at the top before another consolidation occurs.  Its automatic and “you” have control throughout the whole process.

Winning is Good Losing is BAD!

What ever system you are using, it will have an Automatic Stop Loss Sell feature in place.    It’s like putting some chips in your pocket as you are winning.   As long as they are in your pocket they are safe and they are yours.    The best Traders in the market will, if they are honest, admit that they are right only 40 percent of the time!     Bad odds.   Nope,  if your system trails a stop loss along the way up, when you win you sometimes win really big!    When you lose, your stop loss gets you out with a max of 7% or 8%.   Often, it’s 1 or 2%.  

In essence, when you win you win big, when you lose you never get hurt too much.   That's the difference between being a Winner or being a Loser.   The Choice is Yours.