SRS Trading Stock Newsletter Trading The vast majority of stock trades offer only a few percentage point gains. Those who hold too find that profit-taking erodes their profits quickly. We recognize this and have adapted to current stock trading conditions, developing a system for our trading newsletter that locks in profit quickly. 1.Buy only where the stock is most likely to find dip buyers 2.Lock away profits 3.Exit quickly if something goes wrong Repeat again and again and again. Stock Market Trading Strategy Many trading newsletters focus on stocks that have recently made strong moves. Breakout stocks are exciting. Unfortunately, they are also extremely vulnerable to profit-taking. We take a different approach. Before we buy a stock, it must meet several technical criteria. The market must be in a confirmed uptrend, the stock must be in a confirmed, strong uptrend, and the stock must have formed a base after consolidating recent gains. The base offers us at least three important factors. First, it gives us a strong line of support we can use to place a stop loss below. Second, stocks moving up out of a base are much more reliable. Finally, stocks that have recently consolidated gains are much less likely to attract profit takers when the price begins to move higher once again. Trade in direction of trend Buy from sound bases Buy strength, sell weakness Stock Market Pick Strategy: Finding technical patterns isn’t enough. Technical analysis helps determine things like support, resistance and momentum. Unfortunately, technical analysis strategies are so well known today, many smart traders use patterns to trade against retail traders who have taken the easy route by not doing their homework. In today’s world, many technical patterns fail because smart money sells into strength when a company has poor fundamentals. In order to find stocks that have a high probability of success, a trader must understand why buyers might want to buy it at higher prices. We look at the big picture. Technical analysis tells us when and where to buy. The decision to buy or not, however, is determined by several important factors. We start by analyzing which sectors are leading the markets. We then drill down and determine which companies are leading the leading sectors. Finally, we look to see why the company is under accumulation. Does it have increasing fund ownership over a period of quarters? Does it have strong earnings potential? Does it have a strong history of sound earnings? Is it innovative? Focus on leadership Increasing fund ownership Increasing EPS Relative Strength SRS Newsletter Risk Management Strategy: Our stock trading newsletter has a unique approach to risk management we call the Smart Money Principleâ". The Smart Money Principle is a risk reduction, or risk management tool. The goal is to earn at least 10% when your stock succeeds, but that you strictly limit your stock stop loss to only 2%-3% when your stock fails. If you follow this risk management rule, you will always be moving forward. In a nutshell, for our trading stock market newsletter we: Buy at support; we take quick 10% profits; and we use the Smart Money Principleâ" so that we never slip backwards. Position sizing Stop loss placement SRS Smart Money Principleâ" SRS Trading Stock Newsletter Trading On average, with our stock trading strategies, we buy a stock at support and lock in gains at 10%. If something goes wrong in the stock market, we exit quickly with a 2%-3% loss. This gives us a 3-1 online trading profit margin and the results net a lot more profit than you probably think. Newsletter subscribers receive: Daily market analysis Stock trading recommendations Detailed entry, target, and stop loss prices Detailed stock trade description (technical and fundamental) Detailed guidance for open positions
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