There’s an unlucky belief among many of us that doing well in the exchange ( and other markets, actually ) requires a large amount of work and tons of time. This is partially a function of those in the markets desiring to make what they do appear complex, and thus exclusive. The unvarnished reality of the situation is that you do not have to give your life to the markets to supply excellent results.

I’ll use myself as an example. In most years there are important time periods during which my timetable of travel and other commitments inhibits me being very active in the markets. One actual year I added a 6 week trip between the end of May and the early part of July in to the mix as well. In the course of that year I did a total of approximately 12 trades in the exchange. Need to know my return for that year? It was more than 200%.

Now you may be thinking this is an enigma. It is not.

Over about an eighteen month period between 2002 and 2003 I was ready to double the value of my retirement account trading stocks ( I had to double it to make up for the thrashing the retirement funds I had been in before that had taken ) always using a way more conservative approach than in the example above. Again, that was done on a comparatively low number of trades.v in actual fact I do not typically make that many trades in any specified year. If I am getting terribly far above twenty it’s rather strange.

Obviously , I am not a trader. I don’t get into and out of positions speedily. My method is one I have formed over the years which lets me find stocks with good upside potential that I haven’t got to consistently watch. The positions I put on are planned to be held for weeks, if not months. That is the time period when the biggest moves happen, so that is the timescale I would like to trade.

The method I use incorporates all 3 primary kinds of market research elemental, technical, and quantitative. Having said that, nevertheless I’ll go thru the stock selection process in one or two hours, at most. If there is not anything worth actually having a look at, all of it can be done extremely swiftly.

What’s more, if I have active positions on I will generally not be looking to enter any new ones. In that case, aside from a little bit of checking up to see how the stocks are trading and if there’s any important news, there’s very little to be done. I can literally trade my system in only a couple hours a month.

Now you might be saying that I’ve got a great system. Maybe I do. It certainly works for me given the constraints I operate under with my schedule. I don’t consider it any major secret, though. In fact, I outlined it in detail in my book, The Essentials of Trading, so you are free to take a look at it for yourself.

The crucial point here is that I was in a position to develop a trading style and system that will work for me. Any person can do that. It’s a query of making a fair self assessment and outlining an approach that fits in the parameters you have got for trading or making an investment in the markets. Perhaps you can day trade, or perhaps you are like me with little time to dedicate to finding good stocks to purchase.

Whatever the reality, you’ve got to do what does it for you and realize you can trade effectively irrespective of how much time you have got to put in to it.

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Tags: investing tips, investment, marketing, Stock Market

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