Making 200% In The Stock Exchange Can Be Simple

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’ll use myself as an example. In most years there are important time periods during which my timetable of travel and other commitments inhibits me being very active in the markets. One actual year I added a 6 week trip between the end of May and the early part of July in to the mix as well. In the course of that year I did a total of approximately 12 trades in the exchange. Need to know my return for that year? It was more than 200%.

Now you may be thinking this is an enigma. It isn’t.

Over about an 18 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 beating the mutual funds I had been in prior to that had taken) necessarily using a much more conservative approach than in the example above. Again, that was done on a relatively small number of trades. Actually, I don’t normally make that many trades in any given year. If I get very far above twenty it’s rather unusual.

Clearly, I’m not a day trader. I do not get in and out of positions rapidly. My strategy is one I have formed over the years which allows me to find stocks with good upside potential that I don’t have to constantly watch. The positions I put on are intended to be held for weeks, if not months. That’s the timeframe when the largest moves happen, so that’s the timeframe I want 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 significant point here is that I was ready to develop a trading style and system that will work for me. Anybody can do that. It’s a query of making a truthful self assessment and outlining an approach that fits in the parameters you’ve got for trading or making an investment in the markets. Perhaps you can day trade, or perhaps you are like me with little time to dedicate to finding good stocks to purchase.

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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