Stock Trading Strategies, Tips & Software | Buy Low Sell High - Stocks, ETFs, Stock Options

Invest Profitably.
Trade Profitably.
Yes, You've Heard That Before...

These pages are for traders.  Investing is dead, as you will see in other places on this site.  But trading does not necessarily mean gambling - frenetic or not.  Trading does not necessarily mean day-trading where you have to have three computers and five wide-screen monitors that you have to stay glued to for eight hours a day, and where you need your own IT department to keep them running.  It don't necessarily mean sleeping on a couch while the computers take over your bedroom.  There are various time frames you can look at for trading.  Some are suited for those who have all day or most of the day to trade.  Others are for those who have but a few hours a day.  Still others are for those who have but a few hours a week.

You will not find any magic systems on these pages.  What you will find are things I have tried that work and don't work, and hopefully the reasons why.

You will find what I am working on that appears to have promise.

You will find what I think is worth pursuing in the future and what is not.  The reasons for not pursuing something could include being too difficult for me and possibly you, requiring possibly too much capital, requiring possibly too much time, providing a poor reward/risk ratio, little potential to keep up with inflation and taxes, much less to come out ahead, etc.

You will also find common, perhaps well-known and already known to you, information on these pages that I find valuable and that I have posted for two reasons:  One is so I myself can refer to it handily.  The other is that you may also find it useful.

The general areas covered on this site are as follows:

Core Position Trading

Core Position Trading (CPT), specifically Robert Lichello's AIM methodology, was my introduction to stock trading about twenty-five years ago.  I still use that method with my modifications for a lot of my trading.  The advantages of CPT are that it is usually (but not always) provides better results than buy and hold (buy and hope) over a period of years.  It is well-suited for those who can devote only a few hours a week to trading.  The disadvantages are that it can be nerve-wracking in some instances during market declines.  While it usually provides decent returns, it is not going to make you a million unless you start out with few hundred thousand dollars.  So, it can be quite suitable for those already comfortable financially.  It does not offer the potential that more active trading promises.

Technical Analysis

Buy and hold, to the extent it ever did work, has historically depended on fundamental analysis.  If you have years ahead of you and the smarts of a Warren Buffet, maybe using fundamental analysis to pick stocks to buy and hold will work for you.  For us mere mortals, the place of fundamental analysis is in screening for stocks upon which to do technical analysis.

There are many academic studies that claim technical analysis does NOT work; that it is no better than coin-flipping or dart-throwing.  Yet there are thousands of people making a living, some even making a fortune, by trading using technical analysis.

Unfortunately, technical analysis is not for everyone.  For those to whom it is not suited, I recommend Core Position Trading (CPT) as their best hope to at least make some money. 

The requirements, as I see them, for technical analysis is first a "visual intelligence" which means that by study, one can learn to recognize chart patterns -- prices and indicators -- and the relationships between them.  Secondly, some arithmetic ability is required.  Nothing esoteric is required, just basic arithmetic and perhaps a bit of algebra.  Unfortunately in this age of general stupidity and ignorance, a not-surprising number of people are numerically illiterate.  If you can't tell if the results of punching the buttons on your calculator appear reasonable or not, you need some remedial aritmetical education.  Despite the claims of some "gurus" that any idiot can make money.

Stocks & ETFs

The stocks and ETFs section is not for the purpose of "picking" stocks.  This will be nuts and bolts information, such as placing orders, broker information, record keeping, effects of commissions on profits, and much more.  The name of this section will likely be retitled later.

Stock Options

I have come to the conclusion that trading stock (and ETF) options is a better way to go than just trading stocks by themselves.  There is more leverage, so that there is a better chance of making important gains as opposed to just "keeping up with inflation and taxes if lucky" gains.  And yet, despite much ignorance and propaganda to the contrary, trading options can be SAFER than trading stocks.  Not more risky.  As I gain knowledge in this area, more of my resources will be placed into this area.

You will find links to these topics in the menu at the tops of pages and links to them and subtopics in the sidebars.

Core Position Trading™ for
Stocks and Exchange Traded Funds (ETFs)

A Core Position is defined as a core or basic position in a readily tradable item, including such things as precious metal (PM) bullion or coins, stocks, mutual funds, exchange traded funds (ETFs), etc.   Whatever it is you are trading will here be called the "item".

A Core Position Account comprises a quantity of the item AND a cash reserve position.   The cash reserve position enables purchases adding to the quantity of the item from time to time.   Proceeds of the sales of some of the item, from time to time, are added to the cash reserve position.   The cash reserve position enables purchases adding to the quantity of the item from time to time...

Core Position Trading™  (CPT) is defined as buying or selling, adding to or subtracting from, the core position of the item in such a manner as to, over time, increase both the amount of the item AND the cash in the account.

More about Core Position Trading

Glossary of Stock and Options Trading Terms

Core Position Trading
  AIM Stock Buy & Sell Calculator

Technical Analysis
  Risk/Reward Calculator User Doc

Stocks and ETFs
  Stop, Limit, Stop Limit Orders

Stock Options
  Options - The Very Basics
  Options Premium Intrinsic & Time Value

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