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How to create your own
simple stock trading strategy

Key stock trading terms
for best stock market strategies

Monthly income generated by trading on the stock market is possible only with a good stock trading strategy.

I have my own trading based on specific principles. A good trading system should give you answers to these two questions:

  1. How do I find the best trading candidate (best stock pick)?
  2. How I will trade it?

But don’t worry. It can be really simple. Just use the principles of technical analysis (TA). This "reading of stock charts" will provide to you a machine that will generate answers to these questions every day.


I recommend you go through these steps:

  1. Learn the basic elements of TA

  2. Create a stock trading system

    Here you will use basics from the previous step to define how you will find answers to the two questions above, basically, rules for stock scanning and rules for trade entries, exits, stops and their management.

    Also don’t forget to read about the possible results of every stock trade.

    It is important to check trend on stock index charts before decision what direction of trade strategy should be preferred - long or short ?


  3. Complete your system with good money management and risk management rules

    Don’t forget to put into your trading plan these important money management rules defining maximal risk for your trades.

    It is also good to have an idea about stock market trends when you apply your money management rules.


  4. Practice stock chart analysis and trade management

    Apply all rules defined above and practice them. Use a stock trading journal to generate trading statistics. Fine-tune your stock trading based on these statistics to obtain the best results.

    If you want to test your stock trading strategy or risk management for your stock trading system, then always use some paper trade stock market methods.


  5. Start real stock trading and generate monthly income

    Open an account with a good broker and begin to trade stocks using the principles of your stock trading strategy.


I created my own swing trading systems using these steps. You can use this guide if you plan to trade stocks by a day trading system, too . Some of my friends used them to create stock trading systems for longer trades (weeks or months).




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