Your technique for picking winning stocks

[mime]

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.

 

[tech/a]

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

 

[MichaelD]

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.

 

[swingstar]

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.