Wealth Is Made By Focusing In Stocks
STOP.
STOP attempting to develop the ideal trading system. There isn’t really one.
Phew. exactly what a relief. Stop investing all those hours creating a growing number of trading guidelines and realize this:
Cash development in the stock exchange is made from CONCENTRATION. That corrects. Trading the extremely finest stocks atthe ideal time with adequate capital making a huge difference.
You need to go from wealth CREATION to wealth maintance in this game. Unless you intend on “investing” for the next 25+ years and developing wealth slowly. this is my plan of how you can make millions in the stock market:
In Darvas’s book “How I Made Million …”.
The number of looked at his position sizing? In his early trades Darvas just trade 1 or 2 stocks at any one time on MARGIN! Just when he got upto over 0,000 did he start diversifying a little. Many people neglect these truths.
MY Energy Stock PLAN:.
CONCENTRATION BUILDS WEALTH DIVERSITY PRESERVES WEALTH.
END GOAL:.
MILLION+ ACCOUNT MAKING 20-30 % P.A.
Start with:.
,000 Trade 2 stocks with half capital in each.
RISK Per TRADE = 5 %.
When at 0,000 Trade 3 stocks with 1/3 capital in each.
Danger Per Trade = 3 %.
When at:.
0,000 Trade 5 stocks with 1/5 capital:.
Threat Per Trade = 2 %.
When at Million Trade 8 stocks with 1/8 capital:.
Risk Per Trade = 1.25 %.
You initially need to create wealth in order to maintain it. Whilst trading only two stocks at a time might be deemed to “dangerous” by the “specialists” you must be extremely selective on the stocks you trade. Quality beats amount. Especially when you focus so much.
This is the only method a little account can get into the big time. You should not just focus your efforts in the early stages however you should also onlytrade the leading 0.1 % of stocks in the marketand get yourtiming SPOT ON.
