Many investors seek out information on how to trade and invest in the stock markets. Something that may be just as important as how to trade, is what to trade. In speaking to many investors and traders over the years, I have seen people either lose money quickly or , because they didn’t know how to pick stocks for profit, they are forced to hold on to a worthless investment.
Having a proper trading strategy to increase your odds is a key thing to increase your potential for making money in the markets.Online Trading Academy teaches our students a patented core strategy that has a track record of success.However, this is only part of what is needed.If you try to apply the trading strategy to the wrong type of stock, your chances for success go down greatly.
Trading and investing properly is a matter of risk management.When new traders enter the market, they may make money occasionally, but in long term the more experienced traders take that money back.This is because they have risk management strategies that put the odds in their favor.With the right strategy, you can turn the odds in your favor in the markets, too. You have to create a strategic edge for yourself so you are speculating using a measured amount of risk.
How to Pick Stocks
Getting back to how to pick stocks, Online Trading Academy’s core strategy is so successful because it mimics what the most successful group in the markets do. That group is made up of the large institutions like Goldman Sachs and JP Morgan.These institutions consistently profit from the financial markets, year after year.The interesting part is that because they are so large, when they enter and exit the markets they leave a footprint in the charts.This allows the educated investor to mimic their actions and, in turn, their profits.
Therein lies the problem with stock selection.Many people are attracted to penny stocks or lower priced securities because they can buy more of them leading to a belief that there is more potential for making greater profits.This is a trap.In a recent workshop I conducted, a student wanted to look at Insys Theraputics Inc., (INSY).Immediately upon looking at the stock chart, I noticed an issue.Strong supply and demand zones were absent and price action seemed more random.