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TRADING STRATEGY# 1 Pattern Trading [18-AUG-09]
Many Traders/Investors put lot of effort and their hard earned money to stock trading hoping to make big fortune of it without realizing... its not an Overnight Process. It takes time, effort, research, hard work , dedication and sincerity to make money. you do all your research and find stock and open your trade without any RULES and as soon as your stock drops you have no planning/strategy and FEAR TAKES OVER and you come out with losses. That's the most common investor mistakes.
First of all you have to be confident before you put your money in any stock. its not GAMBLING.... its INVESTING .. Serious Business. You have to understand stocks are bound to go High and Low, that's their natural movement.
Some stocks form a Pattern , some have Trading Range, some have limited movements and some do Upside Swing or Downside Swing. but they all do have some pattern, except few cases which are driven by some news or some manipulation.
Here's few suggestions from my experience. You create a watchlist of stocks that you regularly follow so you get familiar with their movements. You keep track of their earnings announcements and dividend dates etc.. you identify their trading range and form entry and exit points. You add 1st position and it it follows your plan and makes money, you take profit and come out. if it doesn't go according to your plan, add 2nd position and see it works. if it works 2nd time you have 2 entry points and more profit. If it doesn't , come out. Limit your losses. Its fine to accept your trade didn't work. It happens to everyone. Nobody makes all trades profitable, but you make sure your losses are minimal and your profit is Maximum. Do all trades based on your research.

See NOV Chart on my website, under TRADING SECRETS [http://kashstockprofits.web.officelive.com], it had a 5$-7$ Trading range both ways(Upside and Downside) from DEC-08 till May-09. If you had this stock in your watchlist, you could have made profits for both side movements.
***I post similar stocks in my STOCK SCAN RESULTS. keep checking.***

For OTHER TRADING SECRETS, TOP STOCK Picks and detailed Technical Analysis, visit: [http://kashstockprofits.web.officelive.com]

Good Luck and Happy Investing.
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