Making 200% In The Stock Market Can Be Easy

There’s an unlucky belief among many of us that doing well in the exchange ( and other markets, actually ) requires a large amount of work and tons of time. This is partially a function of those in the markets desiring to make what they do appear complex, and thus exclusive. The unvarnished reality of the situation is that you do not have to give your life to the markets to supply excellent results.

I’m going to use myself as an example. In most years there are serious time periods during which my program of travel and other commitments stops me being excessively active in the markets. One particular year I added a 6 week trip between the end of May and the early part of July in to the mix also. In the course of that year I did a total of 12 trades in the market. Wish to know my return for that year? It was more than 200%.

Now you might be thinking that this is an anomaly. It’s not.

Over about an eighteen month period between 2002 and 2003 I was able to double the value of my retirement account trading stocks ( I had to double it to make up for the thrashing the mutual funds I had been in previous to that had taken ) always using a way more conservative approach than in the example above. Again, that was done on a comparatively low number of trades. In actual fact I do not usually make that many trades in any particular year. If I am getting extremely far above 20 it’s rather surprising.

Obviously , I am not a day trader. I don’t get into and out of positions swiftly. My method is one I have formed over time which permits me to find stocks with good upside potential that I haven’t got to constantly watch. The positions I put on are planned to be held for weeks, if not months. That is the timescale when the biggest moves happen, so that is the timescale I need to trade.

The strategy I use incorporates all three primary forms of market analysis – fundamental, technical, and quantitative. That said, however, I can go through the stock selection process in a couple of hours, at most. If there isn’t anything worth really looking at, the whole thing can be done very quickly.

What’s more, if I have active positions on I can often not be looking to enter any fresh ones. If so, except for a pinch of checking up to find out how the stocks are trading and if there’s any significant stories, there is very small to be done. I’m able to literally trade my system in only a couple of hours a month.

Now you might be saying that I’ve got a great system. Maybe I do. It certainly works for me given the constraints I operate under with my schedule. I don’t consider it any major secret, though. In fact, I outlined it in detail in my book, The Essentials of Trading, so you are free to take a look at it for yourself.

The important point here is that I was able to develop a trading style and methodology that works for me. Anyone can do that. It is a question of making an honest self -assessment and defining an approach that fits within the parameters you have for trading or investing in the markets. Maybe you can day trade, or maybe you’re like me with limited time to dedicate to finding good stocks to buy.

Whatever the truth, you’ve got to do what does it for you and realize you can trade effectively with no regard for what kind of time you have got to put in to it.

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