Create your own simple stock trading strategy
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: - How do I find the best trading candidate (best stock pick)?
- How I will trade it?
But don’t worry. It can be really simple. Just use the principles of technical analysis (TA), and you will have a machine that will generate answers to these questions every day.
I recommend you go through these steps:
- Learn the basic elements of TA
First you need to know about the basic elements of technical analysis to use in your stock trading system.
- Create a stock trading system
- 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.
- 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.
- 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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