I wanted to get some quick feedback the other day, so I quickly sent out a question on Twitter:
“Has Stocktwits/Twitter made you a better trader?”
Just liked I guessed, there was not one person who said it made them worse, then again those people are probably not around anymore; nonetheless, I am sure the spread between those that like Twitter and those that hate it for stocks is drastically different.
The beauty of a system like Twitter is that it allows everybody to have a voice, and for all our voices to reach more people than ever before; however, a problem that arises from Twitter is for people to either adapt trading styles they are not comfortable or second guess their own strategies.
You can think of Twitter like any big city, a huge melting pot of different cultures, ideas, strategies, and bank accounts. With so many people tweeting away about making this much in so much time or they hope you did not miss this stock, people are quick to drop their own strategy if they think somebody else’s will make more.
While it is all cool if you can eventually completely adapt and master that new strategy, jumping ship too many times or just relying on others to give you stock picks is almost always a straight ticket to bankruptcy.
When it comes to making money in the stock market it is not hard at all. It simply starts by somebody learning a strategy, practicing it, and mastering it. The more we familiarize our self with something, the better we can execute it. If we keep moving in and out of new strategies, then how will we ever master something?
In the stock market, any strategy that makes money is a working one. Sometimes you just need to tweak it a bit to get the most out of it.
If you really want to know the easiest way to make money trading stocks, then find a strategy and stick with it.
How Do I Find My Trading Strategy?
1. The best way to find the a trading strategy for you, is to analyze your own financial situation. Are you looking to make money now or long-term? How much money will you be using? What kind of risk are you looking for?
These questions will determine things like what stocks you will be looking at and the price range you want to be within.
2. Once you figure that out, now you need to think about how you want to analyze these stocks. Do you want to research the company’s numbers (fundamental analysis) or look at patterns from historic prices (technical analysis)?
3. Finally, you test, test, and test. Check out the results you get and tweak from there. Eventually you will find something you are comfortable with, and now this should be your base for any stocks that come your way.