Stock Investing Strategies

Stock investments


Why You Need Your Own Trading Plan

Everyone is looking for the big money making secrete that only “professionals” know about. They want a checklist of percise rules and they want to be sure that if they follow it they are going to become millionaires, or at least quite their job. But it is actually better to create your own trading system yourself rather than try to copy someone else’s strategy.

There are a wide variety of stock market traders out there. Every one of them has created a system that suits their individual personality. For example one trader may shoot for the big home runs even if that means losing many trades in a row before they hit is.

You may not be able to sit around and keep placing losing trade after losing trade in order to hit just a few big jackpots throughout the year. In addition to that one trader may see things just a little differently then you. Where as you may see a stock breaking off to new highs, someone else may see it bouncing off of resistance. This small minor detail can determine whether it gives off a great buy signal or a great sell signal giving you different opinions even if you are trading with the same set of rules.

In addition, you may have a different tolarance for risk then another investor. Someone else may like the highs and lows that come with trading options. You on the other hand may be more suited to simply buying stocks.

The other reason for creating your own system is that you can learn what it takes. It is hard to develope the instincts that you need to survive in the market if you are just trying to copy someone’s get rich system. Things like when a stock simply doesn’t look like it is a good trade and when to just exit out of it can be very important.

In the end it is just better to learn stock trading for yourself and to create your system then try to trade someone else’s.

Tags: ,

Comments are closed.