Your Questions About Successful Trading

Robert asks…

Trading Shares, Index and CFDs? What system has proven to be very successful to you?

No so much interested in text book recommendation of using RSi, Stoch and MACD in some combination. Any other proven system that works at least in the current economic. climate. I am into technical analysis amd not so much into fundamental analysis. Any help would be appreciated.

John answers:

Most of the research attempts have shown that Elliot Wave Analysis generates more frequent reliable signals for trading.

Carol asks…

If you want to get rich, you should start trading in which specific field?

Any successful trading systems with good pay in India?

John answers:


Sandra asks…

What the best and cheapest trading website?

I’ve heard of scottrade and ingdirect… but if I have any successful trades they would get taken away with fees?

What programs do you guys use?

John answers:

I use Scottrade. There is a flat $7 commission for each stock trade, regardless of the number of shares you buy or the cost of the total transaction. The fee for trading in options on line is more expensive at Scottrade (about $28 per trade). You do not have to worry about such an on-line broker taking bigger fees based on your success rate as an investor.

Pick an on line broker that provides access to free research. For example, Scottrade gives you unfettered access to S&P equity research reports, Reuters reports and various technical analysis tools. I am sure other reputable on line brokers do the same. It’s probably not a bad idea to pick one that also has an office located near you.

Steven asks…

Does anyone have a successful day trading strategy?

John answers:

Very simple – know what your are doing, how to do and when to do it.

Before you start trading/investing you must have defined rules and the discipline to stick with them. You also need a very sound money management plan that must also be followed.

Here are some rules that I have used sucessfully for years, although these are the rules that I have used for investing, they can also be applied to trading

The first and primary rule should be never enter into a trade without knowing when and where you’re going to close the trade.

Never invest on emotions; feelings have no place in determining investments.

Only buy stocks with real sales and real earnings, does not apply to pennystocks since they are crap shoots and are traded as fun things and not as investments.

Only consider buying stocks with each of the last three years’ earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.
Avoid cheap stocks, buy only higher quality stocks selling $10 a share and higher.

Never buy if the firm is filing or in bankruptcy.

Learn how to use charts to see sound bases and exact buy points.

Stay with up trending stocks, never buy on down trends. This does mean “the trend is your friend”.

Always buy companies with new ideas, styles or products.

Cut every loss when it’s 8% below your cost. Make no exceptions so you can always avoid huge, damaging losses. You can always average “up”..

Follow selling rules on when to sell and take profit on the way up.

Never average down

Always sell when management cuts sales or earnings forecasts

Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.

Pick companies with management ownership of stock.

Select stocks with increasing institutional sponsorship in recent quarters.

Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock’s industry

Don’t buy because of dividends or P-E ratios.

Find out if the market currently favors big-cap or small-cap stocks.

Good luck

Betty asks…

How to be a successful person in Share Trading ?

Hi i am a one of a player in share Trading for more than 6 years i need to know how to be a successful person in Share market?

John answers:

More than 6 years is a great news, just implement the experience every time you trade that will make you more Successful and just look the strategies of the companies report before you buy that stock,

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