Trading Stocks Simplified

One of the biggest problems most investors face is not realizing how trading stocks is simple and not complicated.

As a result, their strongest attributes can become their worst enemy.

Huh?

Let me explain.

Most of the best stock pickers I’ve ever known are also the worst stock sellers.

They find great value early on in a stock but often hold on to it too long and watch their paper profits turn into losses.

Or they refuse to take a loss when their “prize pick” takes a nosedive.  And then continue to ride it down…hating the stock AND themselves for buying it.

Sounding familiar?

Here’s another example.

You buy a stock and immediately start watching it trade every day – sometimes 4-5 times a day – and either agonize when it goes down or cheer for it when it goes up.

We’ve all been there, done that.

But unless you’re willing to change something about your strategy you’ll continue to be frustrated when the market doesn’t do what YOU think it should do.

And before we show you how trading stocks can be simple, you need to remember an old Wall Street saying:

The markets move in the direction that frustrates the most people.

Trading Stocks and Timing

So, here’s a simple strategy to consider.

When trading, use a 15% haircut and out strategy.

Huh?

I’ll use a recent personal experience to illustrate.

We happen to love American Tower (AMT) stock.

And when it fell into the $225 range (early October) it met our “buy zone” parameters.

I personally bought it at $221.05.

But because the market is so volatile lately, I put in a STOP order to sell if it went down 15%.

Within two weeks I was sold out at $187.89.

As of this writing, AMT is in the $197 range.

However, instead of hating the trade – and losing money – I used the proceeds to buy UPS at $161…currently trading at $169.75.

Here’s the point.

Although I believe AMT is still cheap (and I might buy it again) I’ve moved on from it and recognized value in UPS as a replacement.

And if AMT goes down further, I won’t be tormented and kicking myself for not selling it.

Instead, I took my 15% haircut and got out.

This is just one of many ideas that we share every month in our “Short and Sweet Tips” column (HERE).

And for the price of a couple of lattes you can get ideas that can make OR save you THOUSANDS of dollars.

See for yourself (HERE).

Share this with a friend…especially if they’ve been frustrated trading stocks.

They’ll thank YOU later.

We’re Not Just About Finance.

But we use finance to give you hope.

FYI