Making 200 In The Stock Market Can Be Easy



Making 200% in​ the​ Stock Market Can Be Easy
There is​ an​ unfortunate belief among many people that doing well in​ the​ stock market and other markets, for​ that matter requires a​ great deal of​ work and​ loads of​ time .​
This is​ partly a​ function of​ those in​ the​ markets wanting to​ make what they do seem complicated, and​ therefore exclusive .​
The reality of​ the​ situation is​ that you​ do not need to​ dedicate your life to​ the​ markets to​ produce good results.
I will use myself as​ an​ example .​
In most years there are significant time periods during which my schedule of​ travel and​ other commitments prevents me being overly active in​ the​ markets .​
One particular year I​ added a​ six week trip between the​ end of​ May and​ the​ early part of​ July in​ to​ the​ mix as​ well .​
During the​ course of​ that year I​ did a​ total of​ about a​ dozen trades in​ the​ stock market .​
Want to​ know my return for​ that year? It was more than 200%.
Now you​ might be thinking that this is​ an​ anomaly .​
It’s not.
Over about an​ 18 month period between 2002 and​ 2003 I​ was able to​ double the​ value of​ my retirement account trading stocks I had to​ double it​ to​ make up for​ the​ beating the​ mutual funds I​ had been in​ prior to​ that had taken necessarily using a​ much more conservative approach than in​ the​ example above .​
Again, that was done on​ a​ relatively small number of​ trades.v
Actually, I​ don’t normally make that many trades in​ any given year .​
If I​ get very far above twenty it’s rather unusual.
Clearly, I’m not a​ day trader .​
I​ do not get in​ and​ out of​ positions rapidly .​
My strategy is​ one I​ have formed over the​ years which allows me to​ find stocks with good upside potential that I​ don’t have to​ constantly watch .​
The positions I​ put on​ are intended to​ be held for​ weeks, if​ not months .​
That’s the​ timeframe when the​ largest moves happen, so that’s the​ timeframe I​ want to​ trade.
The strategy I​ use incorporates all three primary forms of​ market analysis – fundamental, technical, and​ quantitative .​
That said, however, I​ can go through the​ stock selection process in​ a​ couple of​ hours, at​ most .​
If there isn’t anything worth really looking at, the​ whole thing can be done very quickly.
What’s more, if​ I​ have active positions on​ I​ will generally not be looking to​ enter any new ones .​
In that case, aside from a​ little bit of​ checking up to​ see how the​ stocks are trading and​ if​ there’s any important news, there’s very little to​ be done .​
I​ can literally trade my system in​ only a​ couple hours a​ month.
Now you​ might be saying that I’ve got a​ great system .​
Maybe I​ do .​
It certainly works for​ me given the​ constraints I​ operate under with my schedule .​
I​ don’t consider it​ any major secret, though .​
In fact, I​ outlined it​ in​ detail in​ my book, the​ Essentials of​ Trading, so you​ are free to​ take a​ look at​ it​ for​ yourself.
The important point here is​ that I​ was able to​ develop a​ trading style and​ methodology that works for​ me .​
Anyone can do that .​
It is​ a​ question of​ making an​ honest self –assessment and​ defining an​ approach that fits within the​ parameters you​ have for​ trading or​ investing in​ the​ markets .​
Maybe you​ can day trade, or​ maybe you’re like me with limited time to​ dedicate to​ finding good stocks to​ buy.
Whatever the​ case, you​ have to​ do what works for​ you​ and​ realize that you​ can trade effectively regardless of​ how much time you​ have to​ put in​ to​ it.





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