Stock Trading Recording by zos11918


More Info
									 Success Trading Group
                Secrets of Successful Trading
             365 Days Without Recording A Loss
We are often asked how in the world did your Success Trading Group record 52 closed
winning trades on its Main Trade Table in 52 weeks with no losing trades? Well, let
me first state that it is true. The Success Trading Main Table is posted in the member’s
section and records every trade we have made over the last several years. In fact, in a
recent 5 year period we closed nearly 200 trades with a 96% winning track record on our
Main Trade Table.

While we obviously can’t tell you our exact “system” we use to pick trades; we can
provide you with an outline of exactly how we go after our stock picking ideas.


Here is a brief overview of the main points behind our success.

   •   Research for safer quality stocks
   •   Study trading ranges
   •   Buy on dips and sell on peaks
   •   Implement money management techniques
   •   Don’t be greedy
   •   Short-term plays


We believe that trading success fundamentally depends on your stock picking abilities,
the quality and characteristics of the stocks you trade, and how well they match your
trading strategy.

Few Stocks

We prefer quality over quantity. We focus on just a few stocks, analyze them in detail,
follow them daily, and carefully monitor all events that impact each of our stocks.
Strongest Companies in Each Sector

We achieve diversification through sector allocation because sectors can be cyclical in
performance. To reduce risk, we only invest in the best companies in each sector and
build a well diversified portfolio with only top-notch stocks.

Solid Industries

Of the hundreds of different sectors and industries to invest in, we focus on only a select
few. We carefully evaluate historical sector performance over long periods of time, and
particularly through financial downturns and upturns to gauge how each sector handled
volatility and external influences. After our exhaustive analysis, we pick a few good
sectors to focus our efforts on.

Strong Fundamentals

When short-listing stocks, we look for “good numbers” – stocks that have consistently
strong revenue growth relative to their peers, low operating costs, a consistent increase
in profit margins, low debt, good cash flow, and a continuous build-up of cash quarter
after quarter.

Strong Management and Public Image

In addition, we look for stocks with excellent (we call it “great”) management and a solid
track record of delivering exceptional value. We look at details such as executive
incentives to see how well they align with enhancing shareholder value, executive
reputation and performance in prior positions, their focus on quality, innovation,
competitive positioning, on customer, employee, partner and supplier relationships, and


While this sounds simple, it is far easier said than done. Our research approach and
trading methodology identifies ideal entry and exit points for winning trades.

Historical Trading Range

We carefully look at the price history of each stock before we make the trade. We study
trading ranges, use proprietary algorithms to determine peaks and valleys (ceilings and
floors, if you will) under various situations, and extrapolate past performance to current
fundamentals and recent 60-day price history to determine trade entry and exit points.


It is very important that you trade with money that you can afford to lose, and will not
need for at least five or more years, as a rule of thumb.

Trade With Money You Can Afford To Lose

When you start investing, you’re apt to make the most mistakes. Therefore, it is
imperative that you only invest money you can afford to lose. Do not risk money that
you’ll need for a mortgage or car payment, because once you put money into the
market, you cannot count on withdrawing it in a week, a month, or even a year. So
discipline yourself on budgeting, and only invest money you need not touch for the next
5 years or more.

Opening Trade

When we have done our research and are ready to buy a certain stock, we allocate a
certain amount of capital to it. We then open our position in that stock with only 50
percent of our allocated capital. This is because we know stock prices constantly
fluctuate based on broad market sentiment. While we may miss out on a few up-market
moves, we inevitably find additional opportunities to plow in the remaining 50 percent of
our capital at a lower cost.

We only allocate small amounts to each stock. If you put too much into one position and
that stock tanks, you can sizably dent your trading capital. So always follow one simple
rule - do nothing that has the potential to wipe out your trading capital if the trade goes
south. Be able to stay in the game is critical in the long-run.

Cost Averaging At Bottoms

With our approach of picking only a few stocks, we know the intrinsic value of each of
our positions and can quickly assess when a market or company-specific event
artificially punishes our holdings. We view such market drops as excellent opportunities
to buy more. That said, we do not jump at the first buying opportunity on a dip but
analyze each dip against historical prices, and wait till our model tells us that a floor has
been reached, and only cost average, if at all, when the stock bottoms and settles at a
new low.


Our focus is not on holding stocks for the long run but on entering and exiting our
positions rather frequently. Our trading strategy also focuses on not getting overly
greedy. We do not set percentage targets and wait. Instead, we are happy to make 50
cents to a dollar per share on each of our trades. Our strategy focuses on keeping our
money in circulation and incrementally our capital base with each trade.

We watch our shares like a hawk looking for the kill. But sometimes, when we have
other commitments, we place limit sell orders good for the day. It’s not ideal but still
works, and let’s us live a little outside the trading room.


Avoid Events

We do not trade on inside information. So while our financial model predicts each stock’s
anticipated revenue and earnings quarter by quarter, we also know that companies often
surprise even their most ardent followers, on the upside sometimes but more often on
the down side. Therefore, we tend to stay away from “event driven” investments such as
trades in anticipation of earnings, merger and acquisition announcements, etc.
Avoid Out-of-Favor Sectors

With our focus on keeping money in circulation, we stay away from out-of-favor
industries and sectors because such investments tie up capital, decrease liquidity,
increase bid-ask spreads, and provide no foresight on when things might pick up.
Instead, we prefer to trade high liquidity, well followed sectors.


We are here to trade and make profits every day on up and down moves. Market
volatility is our friend. We are not in this to wait months and years for our investment
thesis to play out. To profit from our strategy, you must get out of the “investor” and
“stocks for the long run” mentality, and get into the “trader”, “make a profit today”

Our approach is definitely “profits today”.


Trading commissions and fees can quickly add-up for frequent traders. So pick an online
brokerage that charges low trading commissions and has a feature-rich trading platform.
Pick a broker whose website is intuitive, packed with features at no additional cost, and
easy to navigate. For emergencies, it’s also nice to have a broker that responds to calls

With the proliferation of smart phones and 4G mobile data networks, many brokers have
mobile applications that let you trade on-the-go – with streaming real-time quotes,
trading tools, graphs and charts, and the ability to make complex trades enabled by
large mobile phone screens.

For frequent traders, Barron’s recommends TradeStation, MB Trading, Interactive
Brokers, Lightspeed Trading and TD Ameritrade (thinkorswim). Etrade, TradeKing,
OptionsHouse and Scottrade also receive high marks.


Legions of traders have lost money simply because they took their eyes off the ball.
Keep abreast of all news on your stocks, and bad news in particular. If your stock
fundamentally deteriorates in quality, delete it from your list immediately. And
continuously look for new stocks to replace those you strike out.

Get Our Trading Reports Free for 30 days!
We call our Trading Report Service “The Success Trading Group” and through this
special offer, you can receive a 30-day free trial to the Success Trading Group service
AND save $50 per month (after your free 30-day trial).

Simply follow this link:

Don’t miss out on this Special Invitation to receive our Trading
Reports for free!

To top