Below is the current strategy I use when investing my money in the stock market. I may make slight changes and adjustments to this strategy as time goes by, but the general concept will always stay the same.
------------------------------------------------------------------------------------------- If you make 6% 12 times you double your money. If you double your money 8 times it becomes $1.2 million. [Starting with only $5k] -------------------------------------------------------------------------------------------
Portfolio Rules
Always know where my next 6% goal is.
Sell all positions every time goal is reached.
No more than 4 stocks at a time.
Stock Rules
Plan the trade, trade the plan (know exactly where I am going to buy and where I am going to sell before pulling the trigger)
Never let a gain turn into a loss. Use stops.
Never lose more than 2%.
Always sell once up 5-10%.
Stock Picking Rules
Avoid stocks with known upcoming catalysts.
Pick stocks based on trends and technicals.
Look for stocks with potential for 5-10% gains.
Never pick stocks under $20.
Never pick stocks with average volume under 500,000.
Other Rules
Never hold a stock through earnings.
This strategy forces me to acknowledge some very important concepts that I believe make me a better investor.
You will get sidetracked without a solid plan.
Investing is all about discipline. Make a plan and stick to it.
If you want to set your goals high, you need to take lots of baby steps to reach them.
