Create your own simple stock trading strategy
Monthly income generated by trading on stock market is possible only with good stock trading strategy. Good trading system should give you answers to these two questions: - how I find best trading candidate (best stock pick) ?
- how I will trade it ?
But do not worry. It can be really simple. Just use principles of technical analysis (TA) and you will have machine which will generate answers to these questions every day.
I recommend you to go through these steps:
- Learn basic elements of TA
First you need to know about basic elements of technical analysis which you will use in your stock trading system.
- Create stock trading system
- Complete your system with good Money management and Risk management rules
Do not forget to put into your trading plan these important
money management rules
defining maximal risk for your trades. It is also good to have 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 stock
trading journal
to generate trading statistics. Fine tune your stock trading based on these statistics to obtain best results. - Start real stock trading and generate monthly income
Open account with good broker and begin trade stocks using principles of your stock trading strategy.
I personally created my own swing trading systems using these steps. You can use this guide if you plan to trade stocks by
day trading system, too
. Some of my friends used them to create stock trading system for longer trades (weeks or months). FYI: I write regularly about my swing stock trading in my free
stock trading newsletter
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