Time is at a premium and the strategy of the investor should be simply to follow a more efficient and effective trading system. One option to know about the tricks of simple stock trading strategy is to enroll into an expensive course in investing, trading and trade following that would cost about $2000. However, one does not gain much from these because one would not have an efficient stock trading strategy in place, probably still spending precious time dealing with stock investment issues. The American, British and Japanese Stock markets are the places one needs to be in if one has to play a safe game.
Simple stock trading methods are most effective and all that matters is to make the issue as uncomplicated as possible. One must be game for a long haul in the bull market. The first rally in a bull market must not be sold in a hurry for it may lead to losses.
One must simply buy those shares which show strength and sell those which show weakness. Such comparing strategy seems simplistic but they are logical.
One must think rationally and trade in those shares which have the potential of becoming the biggest trade of the year. Contingency plans for exiting the trade should be chalked out earlier. Patience is the key to success. If trade is missed, one must wait for a correction to occur before putting the trade on. Once a trade has been put on, time must be given to create the expected profits. The aim must not be to make small profits for they lead to ultimate losses. The very few large trades that make real profit must be stuck to. On minor corrections against the major trend, add to trades.
In bull markets, one must add to the trade on minor corrections back into support levels. In bear markets, one must add on corrections into resistance. The 33-50% corrections level of the previous movement or the proper moving average as a first point in which to add must be used.
The interesting point is that small losses are the best losses. One must remember not to stick to losing trades or add to it. The buy prices in case of buying must be progressively higher. The formula is the opposite while selling.
Stagnation must be avoided. One's position in the stock market must be assessed regularly and according to that one must add to the trade having the most profit and subtract from those trades that are unprofitable or minimal profit making. Speculations lead to closely watching the technicals and fundamentals and when they converge, trade must begin.
Individual moratorium helps when sharp losses on equity are experienced. The urge to get back invested money should be fought back. On the other end of the scale, when experiencing a purple patch, the old adage of "make hay while the sun shines" must be followed and one must trade big. When adding to a trade one must add only 1/4th or 1/2 as much as currently held. This conveniently moves the average price of holdings. The market works best when the participants are animated and proactive. The first 50% of the price movement takes 90% of the time and requires more backing and filling.
The whole idea of simple stock trading is to follow an attitude of common sense and uncomplicated thinking. Stock trading is not rocket science. It only requires a bit of patience and speculation.