Stock Trading Strategy ZT
(2011-05-07 06:26:32)
下一個
走馬讀人:
Great.
What is your strategy?
What is your criteria when to buy and when to sell
How do you pick up stocks?
My friend:
I did not read much, but I recommend I-Ching once again.
I have many suitable characters for trading as well as the opposite ones, I spent less time, and will minimize my time to one hour per day or less, usually do not do FA,and I started in making a steady gain since March, this year.
Let me refer you to some essays first:
Stock Trading Strategy
The point of trading is to turn a profit, so why put money in a stock that is not moving? Doing so would mean risk without reward. Furthermore, an open position showing a loss should be cut immediately because small losses are the KEY.
At TheStockBandit.com, our objective is to expect profits that outweigh expected losses by at least a 3:1 ratio. Losses are a part of the game, so you must respect them and keep them small. Therefore, only get in stocks on the move with the intention to ride them into profits and exit upon the loss of momentum. It is at this point in the trade that we TAKE THE MONEY AND RUN!!
This strategy is best achieved by buying stocks that are breaking out of tight consolidations on an expansion in volume. This type of move in a stock tells us that the previous area of indecision (consolidation or trading range) has been resolved to the upside and money is flowing into the stock (volume expansion). Volume is the fuel that pushes the stock upward once it begins to move. A lack of volume is a lack of fuel, and the move may be short-lived. Be wary of breakout (or breakdown) moves on light volume as they are prone to failure.
Be in no hurry to put on trades. Trades placed out of boredom lead to bad habits and poor results in the long run. This leads to a loss of trading confidence, which is even more damaging than losing dollars!
Over time (weeks, months, years), be absolutely sure to keep your down days and weeks as small as possible. Growing your account happens when you stay in winners while they run, and cut losers at the first sign of negativity. Big winners are not for offsetting big losers. Wealth comes from big winners, so keep the losers small.
Trading Strategy – What is Your Timeframe?
First of all, decide your timeframe for trading. This is important because it not only determines position sizing, but also where to get out of a trade. Stock picks from the Bandit Broadcast are selected because they are set up for initial moves which are ideal for day trading, as well as longer term moves which are ideal for swing trading. Deciding which approach works for you will help you to determine which exit strategy fits your trading plan best.
Regardless of which timeframe you trade, the key is to keep your risk profile for every trade in check. The stocks listed in the Bandit Broadcast stock newsletter are poised for at least an initial move which is ideal for day trading, as well as for an extended move for swing trading. Our methodology guides every trading decision we make, bringing consistent success from our efforts.
The following links will take you to the pages which will outline a specific Stock Trading Strategy to fit your timeframe:
Swing Trading Strategy
Day Trading Strategy
TheStockBandit Methodology
Do you need to learn about stock trading?
http://www.thestockbandit.com/stock-trading-strategy/
WHEN TO SELL
STB Investor Software Inc.
Just as you need an organized approach to determining whether to buy a stock, you need an organized approach to selling. The same NAIC techniques and tools may be used in both cases.
Signs of Change
Often there are signs which point to the need to pay closer attention to a company you hold in your portfolio.
1. Declining growth rates for sales and/or earnings. These almost always lead to declining Price to Earnings (P/E) ratios and lower market prices.
2. A gradually-declining growth rate for sales and earnings may be the result of a company transforming from a high growth to a maturing company. Watch the research and development spending rate and the company\'s introduction of new products and services. These can affect the company\'s future growth rate.
3. If a company pays a higher percentage of earnings in the form of dividends, this leaves less to reinvest in the business of growing the company.
4. If the company has new management come in, you may want to pay particular attention to what changes are made. It may take 6 months to 2 years (depending upon the size of the company) before management\'s ability can be accurately assessed.
Reasons for Selling
These reasons are really the opposite of the reasons for buying. In both cases, the NAIC techniques and tools are used and judgment is applied.
1. Growth is not satisfactory. It is very difficult to achieve bottom line (earnings) growth without top line (sales) growth. Use PERT and the SSG graph to judge this growth.
2. Profit margins are eroding. Use PERT to check the Pre-tax Income growth and the growth as a percent of sales.
3. The management\'s competence is under question. Examine PERT to note the growth in the various categories.
4. The investment climate for the company or the industry is deteriorating and no improvement is seen on the horizon.
5. The stock is grossly overpriced. Use the SSG to check the P/E ratio against the 5-year average, using a 12 month leading P/E. If the P/E is one and a half times the average, and the upside-downside ratio is less than 1, it is time to consider selling.
6. The stock price is declining for no apparent reason. Institutional investors may know something you don\'t know. You can see the price history graphically if you have filled in the PMG stock prices several times a year.
7. The dividend payout ratio is too high (above 50%, except for special situations like utilities) and/or the percent earned on equity is too low. (Look for negative changes.)
8. The company\'s financial condition is deteriorating. Watch the amount of debt taken on and whether the company can meet payments if the economy slows.
9. To balance your portfolio. Avoid overweighting by company size, industry, or company. (See Diversification for more on this topic.)
http://www.reocities.com/~ssic/sell.html