This thread is to share a very profitable stock trading strategy combined with options that I learnt from a seasoned trader about how to trade stocks the right way and make profit no matter the direction of the stock...When the stock rallies up , we make money..When the stock rallies down we make money as well..When the stock consolidates , we lose little money..We want to focus on stocks that move much..This is what the strategy entails...Buy shares of a stock that you are comfortable owning for at least 6months or more...After buying the stock , we buy insurance which is also called a put option to cover any decline in the stock.If the stock rallies up , we lose our insurance because it becomes useless(Its just like having a car insurance or home insurance) but then we make money from the upside movement of the stock..If the stock rallies down after the purchase , we claim the insurance which is out put option and use that profit to buy additional stocks..Rinse and repeat until you are happy with the money you have made..If you want to make a killing in the market , this is how the big players do it....If you are serious about building serious wealth in the long term this is a strategy that you might consider trading..This is not a get rich strategy..It is a long term strategy that requires iron clad patience but the patience will be worth it in the long run..
NB:This strategy doesn't care whether the stock goes up or down..We will still make money whether the stocks goes up or down provided the stock is moving much and not ranging..
All constructive ideas , suggestions and criticisms are welcome...I am forward testing the strategy currently and if you are interested , you are welcomed to join me forward test this strategy and share ideas....
NB:This strategy doesn't care whether the stock goes up or down..We will still make money whether the stocks goes up or down provided the stock is moving much and not ranging..
All constructive ideas , suggestions and criticisms are welcome...I am forward testing the strategy currently and if you are interested , you are welcomed to join me forward test this strategy and share ideas....
Goal of a successful trader is to make the best trades. Money is secondary