Stock Market Investing Basics

There are three key questions one must address when investing in the stock market:

1. What stocks to buy?

   There a literally thousands of individual stocks from which to chose. Similarly, there are thousands of mutual funds available to purchase. Exchange Traded Funds are the fastest growing segment of the financial markets and there are over 500 ETFs available today with multiple additions every month. There is a famous saying on Wall Street: “The Trend is Your Friend.” My trading systems utilize a proprietary momentum model to identify the ETFs and Mutual Funds that have the greatest momentum. This momentum model answers the question; “What to buy?”

2. When to buy stocks?

   There is a saying that we should “Buy Low and Sell High.” However, no one rings a bell and tells us when to buy and when a low is is really in place. My proprietary technical analysis approach incorporates three technical analysis hurdles that must be jumped before a candidate for purchase can be qualified for purchase. This approach will never get us in at the bottom or out at the top of a trend. However, it will enable us to enter the trade very early once a trend has been confirmed and keep us in the trade until the trend has come to an end. This technical analysis component of my trading systems answers the question; “When to buy stocks?”

3. When to sell stocks?

   Once we have decided what to buy and when to buy it, we now have to decide when it is time to sell and move on to a new investment with greater upside potential. Once again, my proprietary technical analysis model will give us a sell signal when it is time to sell. In addition I employ a strict stop loss and profit-protect system on every trade. This keeps our losses small and lets our profits run.

Mutual Funds Trading System

Exchange Traded Funds ETF

Rebound High Five