Daily trading plan - Part 2

So once you determine the overall market tilt through Market Monitor, the next question is what stocks to buy or short sell. When making this decision one must select proper trading vehicle. In a market where you have choice of 8000 plus stock vehicles, your vehicle selection determines your returns. For example say two traders Trader A and Trader B did 10 trades in a year and trader A chose the Dow Jones 30 stocks as his universe to trade and trader B chose 30 stocks based on earnings momentum. Now if both followed exactly same set of entry and exit rules and risk management rules, the trader B is likely to make more money. Vehicle selection is extremely critical in determining your returns.

The vehicle selection strategy should chose vehicles (or stocks to trade) with high likelihood of going up. 95% of your effort should be in finding stock likely to go up a lot. If you can find characteristics of stocks with high probability of going up and chose those stocks for trading, any simple entry, exit and risk management rule will suffice. If you chose stocks with low probability of going up, no matter what entry, exit and risk management rules, chart patterns, indicators, real time data sources, trading psychology, candlesticks method, charting methods, etc. you use , you will not make much money. If you chose a company with high probability of going up no matter what your entry criteria, your chance of success will be high. Rest all is all about tactics.

So understanding what are some of the vehicle selection strategies I use and why is more critical than the actual mechanics of trading. The edge is in right vehicle selection more

Earlier Post
Daily Trading Plan - Part 1

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

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