February 27, 2011 11:37 pm
Just like trading forex, get familiar with a handful of stocks and tradethem for the 10% gain everytime. once purchase, set sell limit for 10%.It may be within the day you get taken out or in a couple days. Thestrategy is for 10% each time, and compound that. Key is to get in atsupport or at oversold levels.
Do a simple excel spreadsheet. if start off with $1000, at 10% each time compounded, it takes 74 trades to make $1m. Off course, risk is not to put everything into one egg. However, if sticking to this strategy works, divide the money up however it's comfortable for you, and replicate the 10%. Again, it is easier to get 10% on a stock than to wait for home run returns. Even a dead cat bounce stock can yield 10% return.
Strategy is to
i) take advantage of compounding
ii) trade a handful of stocks you are familiar with
iii) get the 10%.
Dont' be greedy. Stick with the strategy.