Making 200% In The Stock Market Can Be Easy

There’s an unlucky belief among many of us that doing well in the exchange ( and other markets, actually ) requires a large amount of work and tons of time. This is partially a function of those in the markets desiring to make what they do appear complex, and thus exclusive. The unvarnished reality of the situation is that you do not have to give your life to the markets to supply excellent results.

I’m going to use myself as an example. In most years there are serious time periods during which my program of travel and other commitments stops me being excessively active in the markets. One particular year I added a 6 week trip between the end of May and the early part of July in to the mix also. In the course of that year I did a total of 12 trades in the market. Wish 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 eighteen month period between 2002 and 2003 I was ready to double the value of my retirement account trading stocks ( I had to double it to make up for the thrashing the retirement funds I had been in before that had taken ) always using a way more conservative approach than in the example above. Again, that was done on a comparatively low number of trades.v in actual fact I do not typically make that many trades in any specified year. If I am getting terribly far above twenty it’s rather strange.

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 probably not be looking to enter any fresh ones. If that is the case apart from a little checking up to find out how the stocks are trading and if there’s any vital stories, there is very tiny to be done. I will literally trade my system in only a few 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 crucial point here is that I was in a position to develop a trading style and system that will work for me. Any person can do that. It’s a query of making a fair self assessment and outlining an approach that fits in the parameters you have got for trading or making an investment in the markets. Perhaps you can day trade, or perhaps you are like me with little time to dedicate to finding good stocks to purchase.

Whatever the reality, you’ve got to do what does it for you and realize you can trade effectively irrespective of how much time you have got to put in to it.

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