Your technique for picking winning stocks - Aussie Stock Forums

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  1. #1

    Default Your technique for picking winning stocks

    Hi guys

    I opened this thread to pick brains of the traders/investers here on how they pick winning stock.

    I use external factors like supply/demand mainly for oil stocks. But if I feel a company has been over sold through fear I'll buy it (AWB wasn't my best choice so far but NAB, TEN and a couple of others were a bit better) I'm looking at financed based stocks because of their stability.

    Your move guys.
    Any advise or insight I give there is always the risk of loosing money.
    Please excuse my English. I got 26/50 in the exam

  2. #2

    Default Re: Your technique for picking winning stocks

    I dont have a winning technique for picking stocks.

    What I do have is a strategy which when ever I take a trade places me in the best position to Profit over the long term.

    Shorterm trading.

    (1) I place very close stops would rather get stopped 2 or 3 times than sit in a losing trade HOPING

    (2) I ride momentum as long as its seen in the direction Im trading,and get off when support is not holding.

    (3) I only trade a maximum of 3 trades short term concerntrating buying power rather than diversifying risk.

    (4) Its always a business decision---not an opinion or an analytical certainty.

    (5) Im fast to exit stops and SLOW to exit a winning position,I would rather sacrifice profit than initial capital. If I'm going to give anything the benifit of the doudt it will be at the PROFIT end of a trade.

    Its not about the ability to pick winning trades

  3. #3

    Default Re: Your technique for picking winning stocks

    I have to concur with Tech/A's points here. Attempting to pick a winning stock is a waste of time. Developing a winning exit strategy is far more important.

    Random entry + a winning exit strategy + money management is more profitable than any stockpicking strategy ever will be.
    The above post is entirely fictional and any resemblance to any stock living or dead is purely coincidental.
    Michael D

  4. #4

    Default Re: Your technique for picking winning stocks

    I like to have a sound reason for picking a stock, and the only methodology that makes sense to me is Elliott Wave. EW is exact in form, but not price and time. I think coupled with certain indicators that may indicate possible turning points and strength, it could lead to a very high win rate (if discounting scrap trades), especially if risk is managed through the use of options.

    I suppose I like Mag's approach to trading. I would like to get into time cycles etc later, but I still need a lot more experience w/ EW.

    BTW, I do currently live trade w/ a simple rule-based system, but I'm not comfortable w/ it. Just as I don't think I would be trading a mechanical system or using indicators to signal possible trends etc.

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