Monday, February 27, 2012

Best Stock Trading System


Match the Stock Trading System to Your Timeframe



Momentum Rider believes that there are many considerations one should carefully review before using a stock trading system and before ”trading” stocks or doing ”long term investing” in stocks. Unless a list of these issues is properly addressed, your trading and investing will not be profitable over time for most people. The primary issue when using most stock trading systems is being on the wrong side of the market. Learning how to read the market is the most important consideration before using any stock trading system. In fact, ideally, the stock trading system would include the market trend as one of its primary focuses for decision making.

The second most common problem for traders is a mismatch between the planned holding period of the trade and the stock trading system. Unless the stock trading system that you are using clearly defines time periods, the profitable trades will be greatly reduced.

Without a clearly defined timeframe and a successful trading that is MATCHED for that defined timeframe, the more difficult it is to consistently outperform the market or to know when to sell a position for a profit.
The Momentum Rider Stock Trading System is designed to be applicable to every type of trader or investor. And, as was discussed above, one must break down the trading universe into clearly defined timeframes for the stock trading system to be profitable. It is meaningless to talk about a strong trend unless you quantify the timeframe. The MR Stock Trading System is based on identifying trends and doing the correct match for our clients style and hold times.

Furthermore, just because you think a particular stock has a company with good fundamentals, it doesn’t mean that the stock’s technicals support a good long entry. Sometimes, strong fundamental stocks get into momentum downtrends that last for months and they should be avoided. Even with good fundamental stocks or good technical setups, the stock trading system needs to be matched with the appropriate trading timeframe for the best results. Otherwise, the entry can lose you money and the exit can either lose you money or cost you money by getting out too early.

Momentum Rider has defined the following trading and investing styles with their own specific holding times in order to optimize the Momentum Rider Stock Trading System results in their subscription services.

Momentum Rider Stock Trading System Timeframe Overview

1) Day Trader – trades in and out of momentum trades during the day and is flat at the end of the day -  Hold Time – 1 day (Stock Trading System 1)
2) Swing Trader – typically trades mostly speculative and aggressive stocks, options, or ETF’s – Hold Time – 2 days to 2 weeks (Stock Trading System 2)
3) Short Term Trader – typically trades mostly aggressive to moderate stocks, options, or ETF’s – Hold Time – 2 weeks to 2 months (Stock Trading System 3)
4) Intermediate Term Trader – typically trades moderate to conservative stocks, options, or ETF’s – Hold Time – 2 months to 6 months (Stock Trading System 4)
5) Long Term Trader – typically trades conservative stocks and ETF’s – Hold Time – 6 months to 1 year (Trading System 5)
6) Income Investor – typically invests almost exclusively in different conservative income stocks and funds – Hold Time – > 6 months (Stock Trading System 6)
7) Traditional Investor – typically invests in very conservative stocks and ETF’s – Hold Time – 1 year to 2 years
8) Long Term Value Investor – typically invests in very conservative stocks and ETF’s – Typ. Hold Time – 3 years or more



Using the Momentum Rider Stock Trading System for Profits

While most people spend quite a bit of time and research trying to select stocks, it is often hard for them to know when the right time is to sell their stocks – especially for beginning traders or investors. The good news is that if you have chosen your stocks carefully as a long term investor, you typically won’t need to sell for several years, unless we are in a major bear market. For a trader, there could be numerous reasons for selling your stocks after only a few weeks or months. This is ultimately where the Momentum Rider Stock Trading System comes into play and helps optimize the profitability.

MR Stock Trading System

The bottom line is that if you truly want to know what stocks to buy, when to buy them, and when to sell them for profit, then you need to use a successful stock trading system, like Momentum Rider’s, that matches up the holding timeframe and stock selection with the proper trading methodology and techniques appropriate for that same period of time.

Please refer to the details on all of MR’s Products to better understand which trading and long term investing services are best suited for your style, goals, education, time dedication, and desired holding periods. Momentum Rider hopes you will join their success team and take advantage of their top performing stock trading system.

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