Trading Stocks! Is that your dream?
Would you like to know how to make a fortune trading stocks?
There are many ways to do this and the most important thing to do is to find the strategy that best suits your personality.
I’m not going to talk about penny stocks or day trading or long term buy and hold strategies here… but I might later. In the right market I have done very well in the junior mining companies listed on the Toronto Venture Exchange..
I’m going to tell you how to make a fortune by swing trading. My definition of swing trading is to trade the intermediate term swings either long or short. And my definition of intermediate term is anywhere from a few days to as much as three months… rarely longer unless the trade is making out like a bandit.
There’s an intermediate term swing cycle in stocks that is generally of 6 to 8 weeks duration from bottom to bottom. Your plan is to catch these swings and ride them to profit.
You can trade individual stocks if you like but for pure simplicity and risk reduction I really like the ProShares ETFs or similar. You can find them at “ProShares.com”.
The advantage of this group of ETFs (Exchange Traded Funds) is that you get 2 for 1 leverage, so they begin to trade with the same volatility as stocks. Plus there’s amazing variety… from Exchange Index funds and Sector Funds to Country Funds and Fixed Income Funds.
On top of that you can choose either a bear fund of a bull fund in any sector you choose.
So here’s what you do:
You go to their website or to Yahoo Finance or wherever and you start to follow the various industry sectors. You want to determine whether they’re in a bull or a bear trend. You then trade the up-trending sectors with a bullish ETF and the down-trending sectors with a bearish ETF.
If you incorporate a momentum oscillator like Stochastics into your toolbox you will be able to follow the 6 week cycles and watch the sectors reach buy or sell points.
You’ll be amazed how well this works.